Advanced Polymer Systems Inc. said Tuesday that it has netted$8.74 million through the private placement of 1.15 millionshares of unregistered common stock at $8 per share. Theinvestors also received 1.15 million three-year warrantsexercisable for one share of stock at $8.80.

APS shares (NASDAQ:APOS) closed Tuesday at $12.25, off 38cents.

The proceeds will be used to complete clinical testing of twoproducts using APS's Microsponge system and to provideworking capital for toiletry products launched by thecompany's Advanced Premier Products subsidiary.

The Microsponge system uses sponges no bigger than a particleof talc for the controlled release of ingredients in thepharmaceutical, cosmetic and personal care areas.

ProZone, a melanin-based sunscreen, is in Phase III trials, anda prescription trans-retinoic acid product to treat acne is inPhase II/III trials. The Redwood City, Calif., company hopes tofile new drug applications on both products by the end of theyear, said spokeswoman Loretta Miller.

Robertson, Stephens & Co. acted as investment banker. -- KB

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