Genta Inc. said Tuesday it expects to generate $8 million in financingthrough the sale of about 4.7 million shares to institutional investorsoutside the U.S.
The San Diego-based company, which restructured in March toreduce expenses by about $5 million a year, said the stock salecoupled with another $3 million it received in a short-term loan, willgive Genta sufficient funds to keep operating into the first quarter of1996.
Howard Sampson, Genta's chief financial officer, said notes on the$3 million loan will be converted to stock at the same price as sharessold in the $8 million offering. The 4.7 millions shares are being soldat approximately $1.70 per share. Following the offering, Genta willhave about 20.5 million shares outstanding.
In March, the company said it had laid off 35 employees since thebeginning of the year to cut expenses and focus resources on itsGeomatrix drug delivery pipeline and Anticode cancer drugs.
Geomatrix is a controlled-release, oral drug delivery system beingdeveloped in collaboration with Switzerland-based Jago Holding AG.
Genta's Anticode cancer program involves technology that employsantisense and triple-stranded therapeutics to inhibit production ofdisease-related DNA.
In addition, Genta is developing Anticode-based products aimed atfighting infectious diseases and restenosis under an agreement withProctor & Gamble Co., of Cincinnati.
Genta's stock (NASDAQ:GNTA) closed Tuesday at $2.50, down 38cents. _ Charles Craig
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