Sepragen Inc., which makes separation and purification systems forbiopharmaceutical production, raised $9 million through an initialpublic offering (IPO) of 1.8 million units, consisting of one share ofcommon stock and two warrants.

The San Leandro, Calif.-based company sold the units for $5 eachand net proceeds to the company totaled $7.3 million. The Class Aand Class B warrants are redeemable over the next five years. EachClass A warrant, with a purchase price of $6.50, consists of one shareof common stock and one Class B warrant. Each Class B warrant canbe redeemed for $8.75. The IPO was underwritten by D.H. BlairInvestment Corp. of New York.

Glen Ambra, Sepragen's vice president of sales and marketing, saidthe company, founded in 1985, had revenues in 1994 of $2 millionand expects to more than double that amount this year with projectedsales of $5 million. From 1988 to 1994, the company raised $3.4million in private investments.

Ambra said Sepragen's radical flow chromatography is being used bybiotechnology and drug companies for manufacturingbiopharmaceuticals. However, the decision to conduct the publicoffering, he added, was based on potential development ofSepragen's technology for large-scale applications in the food anddairy industry.

In particular, Ambra said, the company is studying its systems forseparating unwanted proteins from dairy whey in the production of ahumanized infant formula and the removal of cholesterol from milk._ Charles Craig

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