New Issue: Labopharm raises $88 million in follow-on of upsized 11 million shares at $8 each

By Ronda Fears

Memphis, April 28 - Laval, Quebec.'s Labopharm, Inc. raised $88 million from an upsized follow-on offering of 11 million shares to be listed on the Nasdaq in the United States priced at $8.00 each. Labopharm shares listed on the Toronto Stock Exchange closed Thursday at C$9.02.

Joint lead managing bookrunners of the offering are Merrill Lynch & Co. Inc. and Banc of America Securities LLC. The issue was boosted from plans to issue 10 million shares.

Labopharm plans to use proceeds to support the commercialization of its once-daily painkiller tramadol, to advance development of existing and new product candidates within its product pipeline, and for working capital and other general corporate purposes.

Issuer:	Labopharm, Inc.
Issue:	Follow-on stock offering
Gross proceeds:	$88 million
Net proceeds:	$80.9 million
Shares:	11 million shares, up from 10 million
Greenshoe:	1.65 million shares, up from 1.5 million
Price:	$8.00 per share
Bookrunners:	Merrill Lynch & Co. and Banc of America Securities LLC
Co-managers:	Canaccord Capital Corp., Leerink Swann & Co., Orion Securities Inc., Dundee Securities Corp. and Westwind Partners Inc.
Pricing date:	April 27
Settlement date:	May 3
Stock symbol:	Nasdaq: DDSS
Stock price:	Toronto: DDS closed at C$9.02 on April 27

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