MOGN...This stock could fly in my opinion
Current price $20.00
Applies to -- MOGN -- USB
MGI PHARMA Completes Placement of One Million Common Shares
MINNEAPOLIS, May 25, 2000 /PRNewswire via COMTEX/ -- MGI PHARMA, INC. (Nasdaq:
MOGN) today announced that it has closed on the sale of one million newly issued
shares of its common stock at $18 per share in a registered direct placement of
shares to selected institutional investors. Net proceeds to the Company after
fees and expenses are approximately $16.5 million.
The Company intends to use net proceeds from the planned offering to fund
expanded development activities for irofulven, its promising anti-cancer product
candidate; product commercialization; potential product acquisitions; product
development opportunities; working capital and other general corporate. Chuck
Blitzer, President and Chief Executive Officer of MGI PHARMA, said, "With this
offering, we now have over $43 million of cash and investments. Completion of
this offering was important to our plans for continued growth of our business."
The placement of shares was led by U.S. Bancorp Piper Jaffray with Banc of
America Securities LLC and CIBC World Markets as co-placement agents.
MGI PHARMA, INC. is a pharmaceutical company focused on the acquisition,
development and commercialization of drugs primarily for the treatment of cancer
and rheumatology disorders. Irofulven is the first product candidate being
developed by MGI PHARMA from its family of proprietary anti-cancer compounds
called acylfulvenes.
This news release contains forward-looking statements that may include
statements regarding intent, belief or current expectations of the company and
its management, such as the use of net proceeds from this offering. These
forward-looking statements are not guarantees of future performance and involve
a number of risks and uncertainties that may cause the company's actual results
to differ materially from the results discussed in these statements. Factors
that might affect MGI PHARMA's results include, but are not limited to the
ability of irofulven to be proven safe and effective in humans as a chemotherapy
agent and to ultimately compete successfully with other therapies, continued
growth in sales of Salagen(R) Tablets, development or acquisition of additional
products, reliance on contract manufacturing, changes in strategic alliances,
and other risks and uncertainties detailed from time to time in the company's
filings with the Securities and Exchange Commission. MGI PHARMA does not intend
to update any of the forward-looking statements after the date of this news
release to conform them to actual results.
SOURCE MGI PHARMA, INC.
CONTACT: Bill Brown, Chief Financial Officer of MGI PHARMA, INC.,
612-346-4723, IR@mgipharma.com
/Company News On-Call: prnewswire.com or fax,
800-758-5804, ext. 575987
URL: mgipharma.com
prnewswire.com
(C) 2000 PR Newswire. All rights reserved.
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KEYWORD: Minnesota
INDUSTRY KEYWORD: MTC |
