GERN,
Here is the reason for the downdraft:
Geron prices stock offering at $9 a share
Fri Sep 16, 2005 07:15 AM ET
NEW YORK, Sept 16 (Reuters) - Drug developer Geron Corp. (GERN.O: Quote, Profile, Research) on Friday said an offering of 6 million shares priced at $9 each, about 10 percent below its latest stock price.
Geron will sell an additional 2 million shares to Merck & Co. Inc. (MRK.N: Quote, Profile, Research) at the same price, for a total of $18 million, generating total gross proceeds from the two transactions of about $72 million. The transaction will give Merck a stake of about 3 percent in Geron, a deal agreed to in July as part of a collaboration on developing a cancer vaccine.
Geron, whose shares closed at $9.99 on Nasdaq Thursday, said it will use the proceeds for research and development, including clinical trials, as well as for general corporate purposes.
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