CellPro Inc. announced Monday that Corange Ltd. hascompleted its first equity investment of $50 million in theBothell, Wash., company. The investment consists of thepurchase of 1.2 million shares of newly issued common stock ata price of $43.09 per share.
This is the first of two investments Corange will make under anagreement announced last month (see BioWorld, Dec. 7).Corange of Bermuda will also purchase $60 million of additionalCellPro stock 15 months after the first investment. The secondinvestment will be priced at 155 percent of the average marketprice of CellPro's common stock for the preceding 15 months,provided that the price is not less than $47.70 or more than$60 per share, with the potential for adjustment underspecified conditions.
CellPro (NASDAQ:CPRO) could receive an additional $110 millionfrom Corange under a separate licensing agreement alsoannounced in December. This consists of as much as $55 millionin research and development funds, $45 million in milestonepayments and a signing fee of $10 million.
Following the first equity investment, CellPro hasapproximately 12.9 million shares outstanding and about 14.5million shares on a fully diluted basis.
CellPro's stock closed Monday at $31.63 a share, up 50 cents. --Brenda Sandburg
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