Point Therapeutics puts plans for a follow-on sale of 6 million shares on hold

By Ronda Fears

Nashville, Oct. 28 - Point Therapeutics, Inc. on Friday said it was not proceeding with plans to price a follow-on offering of 6 million shares at this time because of difficult market conditions. The deal had been launched a week ago via bookrunner Pacific Growth Equities, LLC.

"We are encouraged with the interest shown by the investment community in Point Therapeutics," said chief executive Don Kiepert, in a news release. "However, in light of current market conditions, we have decided not to price the offering this week. We plan to continue to evaluate market conditions and will proceed when we believe it is in the best interest of the company."

Co-lead manager is CIBC World Markets Corp.

There is a greenshoe of 900,000 shares.

On Oct. 21 when the deal was announced, proceeds were estimated at $23.7 million, or $27.3 million with the greenshoe, based on an offering price of $4.30 per share.

Point Therapeutics shares opened Friday at $3.75.

The company said it plans to use the funds for further clinical development of its lead drug candidate, talabostat, and for general corporate purposes, including research and development and general and administrative expenses.

Boston-based Point Therapeutics announced Oct. 13 that it initiated a phase III program in metastatic non-small cell lung cancer for talabostat. The company develops a family of dipeptidyl peptidase inhibitors for use in cancer, type 2 diabetes and as vaccine adjuvants.

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