SangStat Medical Corp. completed a $10 million convertible financing of securities that mature in five years and can be converted into common stock at any time before maturity.
The securities, held by an unnamed financial institution, carry an interest rate in the mid-single digits, SangStat spokeswoman Therese Crozier said. The notes can be converted into 500,000 shares, representing a per-share price of about $20.
SangStat¿s stock (NASDAQ:SANG), which has fallen significantly of late, lost 18.75 cents Monday, and closed at $13.25. The stock closed at $27.562 on Jan. 6, when the company got U.S. approval of Thmyoglobulin, a drug for acute kidney rejection in transplant patients, and had gained 32 percent over two days in early November, to $28.56, when the cyclosporine formulation SangCya was approved.
SangStat had cash and equivalents of $29.7 million at the end of 1998, with 16.2 million shares outstanding. Crozier said the $10 million will help ensure the company retains a strong cash position as it builds an inventory of approved products and gears up for marketing products in Europe.
SangStat, of Menlo Park, Calif., does not guide investors as to anticipated product sales. The stock could be pressured by investors who watched Seattle-based PathoGenesis Corp., in another emerging-earnings story, lose two-thirds of its value after reporting its first-quarter sales would be well below expectations.
SangStat intends to disclose its earnings in the first week of May, Crozier said. ¿ Jim Shrine