Tengion Inc. reported Tuesday that it plans to raise as much as $44.4 million in an initial public offering this week, according to Associated Press.
Tengion plans to sell 4.4 million shares for $8 to $10 apiece. Current stockholders have asked to buy about $15 million in stock. Meanwhile, the deal's underwriter's can buy up to 666,667 shares of stock to cover excess demand.
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Tengion expects net proceeds of about $35.3 million, based on an offering of $9 per share after deducting costs and expenses. If the underwriters exercise their overallotment option, the net proceeds could reach $40.9 million.
The company would utilize approximately $9 million of the proceeds for early-stage development in its Neo-Urinary Conduit, which includes the potential bladder tissue product. It would also use $10 million for preclinical research, about $5 million for maintaining research and manufacturing facilities and about $4.3 million to repay debt. The remainder would be used for working capital and other general corporate purposes.
Underwriters for the offering are Piper Jaffray and Leerink Swann.
Tengion is expected to trade under the symbol "TNGN" on the Nasdaq Global Market.
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