Synta Pharma prices offering of up to 6.4M shares at $4.50 per share, and could raise $26.6M
Stock fell to $4.5 in early trading
On Friday January 8, 2010, 10:46 am
LEXINGTON, Mass. (AP) -- Synta Pharmaceuticals Inc. said Friday it expects to raise as much as $26.6 million by selling new shares of stock.
The company priced an offering of 5.6 million shares at $4.50 per share, which would give it $25 million in gross proceeds and $23.1 million after discounts and expenses are deducted. The underwriters of the offer will have the option to buy another 833,000 shares to cover over allotments, which would bring the company another $3.5 million after expenses.
Synta had about 34 million shares on the market as of Oct. 30, and the offering could raise that figure 18.8 percent to about 40.4 million shares. The stock closed at $5.46 Thursday, making the offer price a 17.6 percent discount. In morning trading, the shares dropped 95 cents, or 17 percent, to $4.51 as Wall Street considered dilution to the value of the stock.
Synta said the offering will close on Wednesday. It will use the money to fund research and development, clinical trials, manufacturing, protecting its intellectual property, and working capital, among other purposes.
Lazard Capital Markets is the bookrunning manager for the offering, and RBC Capital Markets is the co-manager. |
