Genelabs Technologies Inc. said Thursday it raised $10.7 millionthrough the sale of 3.2 million shares, which resulted from theexercise of warrants issued in a private placement last year.
Investors in an August 1995 private placement that brought in $20million were issued warrants to purchase one-half share at about$1.70 apiece. The warrants weren't set to expire until June 1996, butthe call date was moved up because the average trading price of thestock exceeded $5.50 over a 30-day trading period.
Genelabs (NASDAQ:GNLB) closed down 31 cents Thursday at$6.19 per share.
The Redwood City, Calif., company reported $22.6 million in cashand equivalents on Dec. 31, 1995. Genelabs just brought in another$10.7 million and will be paying $2.8 million on subordinated notesdue next week. After the placement the company has about 35.7million shares outstanding.
It spent about $1 million per month in 1995, but that took intoaccount $6 million the company received by licensing certaindiagnostic rights to the hepatitis G virus. Genelabs spent $4.8 millionin 1995 related to its joint venture with the government of Taiwan.
The company is concentrating on four development areas:diagnostics, including the hepatitis G test; GL701 (DHEA), a drug inPhase III trials for lupus; the project in Taiwan; and early stagedevelopment of DNA-binding technology. _ Jim Shrine
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