Alpha-Beta Technology Inc. announced Tuesday that it hascompleted a follow-on public offering of 1.3 million shares ofcommon stock at $30 per share just two weeks after filing aregistration statement with the Securities and ExchangeCommission.
Alex. Brown & Sons Inc., Kidder, Peabody & Co. Inc. and VectorSecurities International Inc. managed the offering. Theunderwriters have an option to purchase an additional 195,000shares to cover overallotments. Excluding the overallotments,Alpha-Beta (NASDAQ:ABTI) of Worcester, Mass., has 11.5million shares outstanding after the offering.
As of Sept. 30, Alpha-Beta had $27.2 million in cash, cashequivalents and short-term investments; its burn rate wasabout $3.1 million a quarter.
Alpha-Beta plans to use the proceeds from the offeringprimarily for continued development of its lead product,Betafectin, a carbohydrate immunotherapeutic for theprevention and treatment of infection; development of Cholazol,a non-systemic cholesterol-lowering agent now in pre-clinicaldevelopment; and facilities expansion, Braden Bohrmann, thecompany's chief financial officer, told BioWorld.
Alpha-Beta's stock closed at $30.13 a share on Tuesday, down$1.88.
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