Cantab Pharmaceuticals plc has agreed to privately placeordinary shares with four institutional investors to raise $5million.

The placement will be completed when various conditions aresatisfied, including effectiveness of a registration statementallowing ordinary shares to be re-sold as American DepositoryShares (ADS).

The Cambridge, England, biotechnology company(NASDAQ:CNTBY) completed an initial public offering (IPO) inJuly 1992 in which 400,000 shares were offered in the U.S. and600,000 were made available to investors outside the U.S. andCanada.

When the IPO was completed, the company had about 6 millionordinary shares outstanding. An unspecified number of newshares will be issued in the private placement, said NicholasHart, chief financial officer.

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