Cell Genesys Scores $30 Million Premium Financing (CEGE)
Cell Genesys, Inc. (NASDAQ: CEGE) plans to offer 7.1 million shares of common stock and warrants at an equivalent of $4.22 per share with a single institutional investor, for an equity offering valued at approximately $30 million.
The warrants will have a strike price of $10.00 and can purchase 8.5 million shares. The proceeds from the offering will be used to finance developmental products such as its GVAX treatment for prostate cancer, as well as for general corporate purposes.
The offering is expected to close Wednesday. Credit Suisse Securities LLC is the lead placement agent for the offering.
The cancer focused biotech company is trading down over 3% in early morning trading at $3.77. The market cap sits at approximately $300 million and the 52-week range spans $1.78 to $4.71.
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May 12, 2008