Crop Genetics International Corp. announced that it has filed fora secondary offering of 3.5 million shares of common stock.

The Hanover, Md., biopesticide developer (NASDAQ:CROP) willuse the funds to build and operate an insect virus productionfacility.

In December, Crop Genetics announced its first corporatepartnership, an alliance with Du Pont to commercializeinsecticidal virus products. Du Pont is providing up to $3.75million in development funds over the next two years inexchange for exclusive worldwide marketing rights.

Crop Genetics has three products in registration at theEnvironmental Protection Agency. Farthest along are Spod-Xfor beet army worm in vegetables and Acal to control pests incotton and vegetables. A third product, Cyd-X, is for apples andpears. All are being developed through the company's InStardivision in cooperation with Du Pont. None will be marketedthis year.

Through its InCide division, Crop Genetics is developing plantvaccine systems in which plant seeds are inoculated withgenetically engineered microorganisms to control pests. The X-tend division is developing bacterial agents for use incombination with reduced amounts of chemical herbicides. TheKleentek division markets disease-free, high-yield sugarcaneseed products.

If the offering is completed, Crop Genetics will have 8.8 millionshares outstanding. Underwriter Alex. Brown & Sons Inc. has a15 percent overallotment option.

The company's shares closed up 50 cents at $6.25 on Friday. --KB

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