Cell Genesys to sell 7.1 million shares for $30M

By Associated Press May 12, 2008 Comments (0)

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Cell Genesys Inc. said Monday it plans to sell 7.1 million shares of its common stock and warrants to buy 8.5 million shares through a registered direct offering.

The 7.1 million shares are expected to be sold at $4.22 each, while the warrants are exercisable at $10 per share.

The biotech company anticipates gross proceeds of $30 million, prior to deducting offering fees and expenses.

Cell Genesys said it plans to use net proceeds to finance development of product candidates, including its portion of the final stage costs for its GVAX treatment for prostate cancer, as well as for general corporate purposes.

The offering is expected to close on Wednesday.

Shares of Cell Genesys gained 5 cents to $3.95 in electronic premarket trading. The stock closed at $3.90 on Friday.

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