Interneuron Pharmaceuticals Inc. announced Thursday that itis placing 1.75 million shares of its common stock with anumber of institutional and private investors.
The PIPE (private investment in public entity) offering is beingmade at $9 per share and will raise gross proceeds of $15.75million for the Lexington, Mass., company. The placement isbeing managed by Vector Securities International and issubject to approval by the Securities and Exchange Commission,which must register the new shares before they can becomefreely tradable.
Interneuron currently has approximately 27 million sharesoutstanding, Glenn Cooper, the company's president and chiefexecutive officer, told BioWorld. After the placement thecompany expects to have $29 million in cash on hand, which itwill apply toward research and development. In particular,Cooper said, the company will use the funds for development ofciticholine for stroke and head trauma, dihydrexidine forParkinson's disease, IP 456 (which the company licensed fromRhone-Poulenc Rorer earlier this month) for anxiety, and IP100-9 for insomnia. In its last fiscal year Interneuron reporteda net loss of approximately $15 million.
Its last financing, a secondary public offering, closed in March1993. The company raised net proceeds of about $13.5 millionthrough the sale of 2.3 million shares at $6.50 per share.
Interneuron's stock (NASDAQ:IPIC) closed at $10 per share onThursday, up 13 cents.
-- Karl A. Thiel Business Editor
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