Magainin Pharmaceuticals Inc. announced Thursday that it hascompleted a private placement of 2.2 million newly issuedshares of its common stock (NASDAQ:MAGN), raising $19.25million.
The closing of the placement, which the Plymouth Meeting, Pa.,company announced on Sept. 27, was dependent on theeffectiveness of the S3 registration statement, which covers theresale of the shares by the purchasers. The private placementwas arranged by Hambrecht & Quist Inc. and S.G. Warburg Inc.
Magainin sold the shares to the private investors at $8.75 each,a 7.9 percent discount to the trading price of the stock at thetime the deal was negotiated. The stock closed Thursday at$13.75 a share, down 75 cents.
According to Jay Moorin, Magainin's president and chiefexecutive officer, the company now has approximately $42million in cash and investments. It expects to use the proceedsfor clinical trials, including those on its lead compound, MSI-78,a topical broad-spectrum anti-infective which is now in PhaseII/III trials for treating impetigo.
Magainin also intends to apply the new funds to research anddevelopment activities, construction and facilities expansion,establishment of commercial manufacturing and marketingcapabilities and general corporate purposes.
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