Seragen Inc. announced Wednesday that it has completedagreements with investors to sell approximately 275,000 units,consisting of 1.1 million shares of common stock and 275,000warrants, in a private offering.
Each unit consists of four shares of newly issued common stockand one warrant exercisable into one share of common stock ata price of $10 per share.
Seragen (NASDAQ:SRGN) of Hopkinton, Mass., will initially raise$6.6 million, with an additional $2.75 million possible uponexercise of the warrants.
Investors in the private investment in public entity (PIPE)offering received a discount of approximately 10 percent offthe market price at the time of the negotiation. The investorswere led by Weiss, Peck & Greer and included Morgens,Waterfall, Vintiadas & Co.; Abingworth Bioventures; WellsFargo Bank; Auerbach Pollak and Richardson and SherwoodSecurities.
On completion of the offering, Seragen will have about 15.1million shares of stock outstanding and an estimated $17million in cash. The company's burn rate is approximately $1.3to $1.4 million per month.
SeragenUs last offering was in March 1993 when it raisedapproximately $16.5 million from a public offering of 1.75million shares of common stock.
The company said funds from the current offering will keep itsclinical trials program on track. Its receptor-targeted fusiontoxins are in Phase I/II clinicals for severe rheumatoidarthritis, recent-onset Type-1 diabetes, psoriasis,chemotherapy-resistant lymphomas, HIV infection and solidtumors.
Seragen's stock closed unchanged Wednesday at $7 a share.
-- Brenda Sandburg News Editor
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