Icagen Inc. (NASDAQ: ICGN) has announced that it has provided notice to exercise its put option with Pfizer Inc. (NYE: PFE). This is for the private placement of approximately $10 million of Icagen common stock.
the closing date of the transaction is February 13, 2008, and some 5,847,953 shares of common stock will be sold to Pfizer at a price of $1.71 per share.
Icagen said it intends to use the proceeds to fund its R&D programs and for general corporate purposes. This purchase agreement was based upon terms of the collaboration between Icagen and Pfizer that had already been announced. Icagen has agreed to file a registration statement with the SEC that covers the resale of these shares issued in the private placement.
This is after last month’s announcement that the FDA accepted the company’s investigational new drug application as a potential Asthma treatment. Subsequently it noted back then that it would begin dosing for Phase Ib clinical trials.
Icagen’s stock used to trade in a $6 to $10 range when it came publicback in 2006, and it saw a severe setback in late 2006 that has keptshares under $2.00 for most of the time since then. Icagen shares are indicated up some 20% at $2.09 in early pre-market trading. Its 52-week trading range is $1.20 to $3.09 and its market cap before this pop was only $70 million.
Jon C. Ogg
February 6, 2008