Cygnus Therapeutic Systems announced Friday that it has fileda registration statement with the Securities and ExchangeCommission (SEC) for a follow-on public offering of 3 millionshares of common stock (NASDAQ:CYGN).
The Redwood City, Calif., company intends to offer 600,000 ofthose shares in a concurrent international offering, with theother 2.4 million offered in the U.S. In addition, 450,000 shareswill be subject to an overallotment option granted to theunderwriters.
Managing underwriters for the U.S. offering are PaineWebberInc. and Hambrecht & Quist Inc.; PaineWebber International(U.K.) Ltd. and Hambrecht & Quist Inc. will handle theinternational offering.
Cygnus, which is developing advanced transdermal drugdelivery systems, intends to use the proceeds to acceleratecertain product development programs, especially to hireadditional research and process development personnel tosupport its hormone replacement and non-invasive glucosemonitoring programs. Cygnus is already marketing one product,Nicotrol for smoking cessation.
This is the second time that Cygnus has sought to raise moneyin a follow-on offering. In May 1992 it garnered $22.5 millionon sales of 12.5 million shares of common stock at $15 pershare. This was a lot less than the company had anticipated; ithad hoped to place 3 million shares, which were trading atabout $25 in March when it filed for the secondary.
The initial public offering in February 1991 raised $25 millionon sales of 3 million shares at $9 per share.
Cygnus' stock gained 25 cents a share on Friday to close at $7.
-- Jennifer Van Brunt Senior Editor
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