The Liposome Company Inc. (TLC) announced that theunderwriters of the company's recent offering have exercisedtheir option to purchase an additional 360,000 depositaryshares, at a price to the public of $25 per depositary share, tocover overallotments.
Each depositary share represents one-tenth of a share of SeriesA cumulative convertible exchangeable preferred stockcarrying a 7.75 percent dividend rate.
TLC previously announced that it had successfully completedan offering of 2.4 million depositary shares, raising netproceeds of approximately $57 million. Totals for the offering,including the overallotment option, now stand at 2.76depositary shares sold, with net proceeds to TLC ofapproximately $66 million. Hambrecht & Quist Inc. and Dillon,Read & Co. Inc. served as underwriters of the offering.
The net proceeds will be used primarily for the developmentand clinical testing of its self-funded products, including ABLC,the rights to which were recently acquired from Bristol-MyersSquibb. In addition, the proceeds may be used for theexpansion of research activities and manufacturing facilities,the development of marketing and distribution capabilities,and other general corporate purposes.
The depositary shares trade on the NASDAQ system under thesymbol LIPOZ. Shares of the common stock of TLC continue totrade on NASDAQ under the symbol LIPO.
TLC common stock closed Friday at $11.75, down 50 cents ashare.
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