Gensia Pharmaceuticals Inc. raised $80 million last week whenit completed a private placement of 1.6 million shares of its$3.75 convertible exchangeable preferred stock at a price of$50 per share. Alex. Brown & Sons Inc., Montgomery Securitiesand PaineWebber Inc. served as underwriters.
The preferred shares are convertible into shares of commonstock (NASDAQ:GNSA) at a conversion price of $27.60 per share,subject to adjustment. The preferred shares will beexchangeable at Gensia's option on any dividend payment datebeginning March 1, 1996, for Gensia's 7.5 percent convertiblesubordinated debentures, due 2003, at the rate of $50 principalamount of debentures for each preferred share.
Gensia of San Diego intends to use the net proceeds from theprivate placement to fund research and development, forcapital expenditures related to new and expanded facilities andfor general corporate purposes.
Gensia's stock closed Monday at $21 a share, up 50 cents. --Jennifer Van Brunt
(c) 1997 American Health Consultants. All rights reserved.