T Cell Sciences Inc. announced Friday that the registrationstatement on its recent private placement of newly issuedshares of common stock (NASDAQ:TCEL) to various institutionalinvestors has become effective.
The Cambridge, Mass., company raised $18 million from theplacement of 2.8 million shares at $6.35 per share (a 12percent discount to the trading price of the stock) on Nov. 23.The transaction was arranged by Wertheim Schroder & Co. Inc.
With completion of the placement, T Cell Sciences has 17million shares outstanding. The company also more thandoubled its cash balance through this transaction. At the end ofthis year's third quarter (Sept. 30), it had $12 million in cashand a burn rate that could reach $8 million by year end.
The company will use the new cash infusion to accelerate thedevelopment of its second-generation complement inhibitorsfor treating inflammatory diseases and for launching its firstimmunodiagnostic product, TRAxCD4.
The stock lost 25 cents on Friday, closing at $7.25.
-- Jennifer Van Brunt Senior Editor
(c) 1997 American Health Consultants. All rights reserved.