Alpha-Beta Technology Inc. bolstered its cash positionwith the sale of common and preferred stock to a group ofinternational investors for $8.3 million.
Augustine Lawlor, vice president of finance for Alpha-Beta, said Thursday the Worcester, Mass.-based companysold about 840,000 shares for $3.8 million and 45,000shares of convertible preferred stock for $4.5 million.
The per-share price of about $4.53 for the common stockrepresented a 20 percent discount to the company'strading price of $5.66 at the time of the placement.
The preferred stock will convert to common shares overtwo years. The number of common shares exchanged forthe preferred stock will depend on the trading price atconversion. Based on $5.66 per share, Lawlor said about1 million common shares would be distributed to thepreferred stockholders.
Alpha-Beta (NASDAQ:ABTI) closed Thursday at $6.75,up 50 cents.
Lawlor said the private placement "strengthens ourfinancial position and lets us focus on the promise of ourPhase III trials" of the company's lead product, BetafectinPGG-glucan, for prevention of hospital-acquiredinfections.
The clinical studies, involving 1,200 patients at multiplemedical centers, began in February. Results from thetrials are expected by the end of 1996.
Betafectin is a mutated derivative of the cell walls ofyeast. It is designed to attach to the beta-glucan receptoron the surface of white blood cells, enhancing their abilityto respond to pathogens.
The $8.3 million from Alpha-Beta's private placementgives the company about $38 million in cash. Alpha-Betacurrently has about 12.5 million common sharesoutstanding and a burn rate of $2 million per month. _Charles Craig
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