Shaman Pharmaceuticals Inc. announced late Friday that it hasraised $17 million in its follow-on offering of 2 million sharesof common stock.
The shares (NASDAQ:SHMN) were priced at $8.50 each, the lowbid price on Friday (the stock closed Friday at $9.63 per share).
The co-managers of the offering, S.G. Warburg and Co. Inc. andHambrecht & Quist Inc., have the option to purchase anadditional 300,000 shares to cover any overallotments.
Shaman of South San Francisco, Calif., filed for the offering onNov. 10, when the stock was trading at $11.25 per share.
Although the offering only brought in $8.50 per share, bothH&Q analyst Alex Zisson and Shaman's president and chiefexecutive officer, Lisa Conte, felt that the deal was successful."Many follow-on offerings are being done at a discount to thetrading price of the stock the day before the offering closes,"said Zisson.
"The bottom line was that we met our objective: We've putanother year's burn rate into the bank," Conte told BioWorld."Shaman should now have enough money to last it well into the1996 time frame."
In January, Shaman completed its initial public offering of 3million shares at $15 per share, grossing $45 million.
The company reported total assets of about $44 million(including long-term investments; current assets were $19.9million) for the third quarter ended Sept. 30, with lossesrunning at $4.1 million for the quarter.
The stock closed Monday at $9.50 a share, down 13 cents.
-- Jennifer Van Brunt Senior Editor
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