By Ronda Fears
Nashville, Nov. 22 - Point Therapeutics, Inc. priced a revived and upsized $24.15 million follow-on offering of 8 million shares at $3.00 each, discounted from Monday's closing level of $3.15, via bookrunner Pacific Growth Equities, LLC.
The deal, which had been put on hold in the last week of October due to difficult market conditions, was boosted from 6 million shares.
On Oct. 21, when the deal was announced, proceeds were estimated at $27.3 million with the greenshoe, based on an offering price of $4.30 per share. Boston-based Point Therapeutics had raised $16.4 million in a direct placement of 3.65 million shares at $4.50 each in March.
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.
Last week, Point Therapeutics presented preclinical data on talabostat, demonstrating anti-tumor activity when combined with either pemetrexed or erlotinib in a non-small lung cancer xenograft model in immunodeficient mice. The company develops a family of dipeptidyl peptidase inhibitors for use in cancer, Type 2 diabetes and as vaccine adjuvants.
Issuer: | Point Therapeutics, Inc.
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Issue: | Follow-on stock offering
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Gross proceeds: | $24.15 million
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Net proceeds: | $22.2 million
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Shares: | 8,050,000 shares, up from 6 million
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Greenshoe: | 1,207,500 shares, up from 900,000
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Price: | $3.00 per share
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Bookrunner: | Pacific Growth Equities, LLC
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Pricing date: | Nov. 21
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Settlement date: | Nov. 28
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Ticker: | POTP
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Stock price: | $3.15 at close Nov. 21
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