ZymoGentics Backers File To Sell Stock (ZGEN, NVO)
ZymoGenetics, Inc. (NASDAQ: ZGEN) has filed an SEC registration which would allow the company to sell up to $100 million of its common stock from time to time. What is important to note is that this is intended to replace the company’s previously filed shelf registration statement set to expire on December 1, 2008. What is also important to note is that the filing is essentially of little benefit to the company.
This registration includes the registration for resale of up to21,759,861 shares of previously issued common stock owned by NovoNordisk’ (NYSE: NVO) Biotech Holdings unit and up to 9,387,559 sharesof previously issued common stock owned by Warburg, Pincus EquityPartners, L.P. The majority of these shares were issued in privateplacements prior to ZymoGenetics IPO in 2002.
ZymoGenetics will not receive any proceeds of the shares being sold bythese holders. ZymoGenetics also noted that neither it nor any of theshareholders covered by the registration statement have intentions tosell shares at this time, and it said that the number of ZymoGeneticsshares outstanding would not change from any sales of Novo and Warburgshares.
It seems like Wall Street is a little more concerned over this thanZymogentics is about this. The stock closed down 7.7% at $2.75 on low volumetoday, but shares are down an additional 6.9% after the news releasecame out. Its 52-week trading range is $2.50 to $15.23.
Jon C. Ogg
November 25, 2008