T Cell Sciences Inc. announced Tuesday that it has raised $18million in a private placement of 2,835,000 shares of newly-issued common stock at $6.35 per share.
According to Alan Tuck, the company's president and chiefexecutive officer, the offering was made at a 12 percentdiscount to Monday's closing price of $7.25. On Tuesday thestock closed at $7.38, up 13 cents.
T Cell Sciences of Cambridge, Mass., said several institutionalinvestors from the U.S. and Europe signed agreements topurchase the stock. The closing of the transaction is conditionedupon the effectiveness of a registration statement to be filedwith the Securities and Exchange Commission covering resalesby the purchasers. The underwriter was Wertheim Schroder &Co. Inc.
The placement is the first offering T Cell Sciences(NASDAQ:TCEL) has made since May 1991, when it raised $15million in a secondary offering. At the end of this year's thirdquarter the company had $12 million in cash. With a $7 millionto $8 million burn rate this year, the current financing willprovide a boost for the next two years.
T Cell Sciences said it will use the money to acceleratedevelopment of its second-generation complement inhibitorsfor the treatment of inflammatory diseases and to launch itsimmunodiagnostic TRAx CD4. The company's lead complementinhibitor, the recombinant protein sCR1, licensed to SmithKlineBeecham, entered clinicals last December. T Cell Sciencesexpects to begin clinical trials with its own inhibitors in 1995.A 510(k) application for the immunodiagnostic was filed inOctober 1992 and is pending FDA approval.
Funds from the offering will also be used to furtherdevelopment of T cell antigen receptor (TCAR) therapeutics forthe treatment of autoimmune diseases.
-- Brenda Sandburg News Editor
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