Genelabs Technologies Inc. on Monday said it has filed for aninitial public offering of 3 million shares of common stockpriced between $10.50 and $13 per share.
The Redwood City, Calif., company is focusing its research onproducts for the diagnosis and treatment of viral diseases andcancer. The company has one product, GLQ223 for treating theAIDS virus, in Phase II clinical trials.
Genelabs will have 17.7 million shares of common stockoutstanding if the offering is completed. The stock will betraded on the NASDAQ exchange under the symbol GNLB.
Proceeds will be used for research and product development,funding of clinical trials, expansion of facilities, working capital,general corporate purposes and possible redemption of $2.8million of outstanding convertible promissory notes.
For the quarter ended March 31, Genelabs had a net loss of$3.6 million on revenues of $954,000.
Genelabs, founded in 1984, has raised $39.6 million in severalrounds of private financing. Following the offering, Genelabs'major stockholders will be Advent International Funds, with a13 percent equity stake; H.H. Haight, who works at Advent andmanages various funds, with 13 percent; Frank Kung, Genelabs'president, with 5.6 percent; Edgar Engleman, a Genelabsfounder, with 5.2 percent; and Dreyfus Corporate Funds, with 5percent.
Underwriters Allen & Co. Inc. and Prudential Securities Inc.,both of New York, have an option to purchase an additional450,000 shares to cover overallotments.
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