Cambridge Neuroscience Inc. announced Friday that it hassigned agreements with investors to sell 2.1 million shares ofcommon stock in a private placement priced at $6.75 per share,a 10 percent discount from the average bid price over the pastfew weeks.
The placement will gross about $14.2 million and net theCambridge, Mass., company approximately $13.2 million,according to Philip Holberton, vice president and chief financialofficer. Smith Barney Shearson handled the placement.
Cambridge Neuroscience (NASDAQ:CNSI) said it will use theproceeds to advance the clinical trials of Cerestat, its leadneuroprotective agent for patients suffering from stroke ortraumatic brain injuries, as well as for corporate uses. Thecompany had approximately $7.9 million cash at the end ofDecember and a burn rate of about $1 million per month.Cambridge Neuroscience last raised money in November 1991with a public offering garnering about $19 million.
Existing shareholders taking additional positions in thecompany included Aenes Venture Corp., Pincus Capital Partnersand BEA Associates. New investors included T. Rowe Price NewHorizons Fund; funds managed by Weiss, Peck & Greer; fundsmanaged by Morgens, Waterfall, Vintiadis & Co.; fundsmanaged by Mehta & Islay; and the Board of PensionCommissioners of the City of Los Angeles.
Cambridge Neuroscience's stock closed at $7.75 a share onFriday, down 25 cents. -- Jim Shrine
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