By Ronda Fears
Nashville, Sept. 16 - Stem-cell research firm Geron Corp. priced a follow-on offering of 6 million shares of common stock off the shelf at $9.00 per share, discounted from Thursday's closing level of $9.99, via bookrunner UBS Investment Bank.
Concurrently, the company said Merck & Co. Inc. exercised a warrant to purchase $18 million of Geron common stock, also at $9.00 per share, pursuant to a collaboration and licensing agreement between the companies on July 15.
Gross proceeds were estimated by Geron at $72 million, including the Merck transaction as well as the follow-on offering.
Menlo Park, Calif.-based Geron said proceeds would be used for research and development, including clinical trials for its drug candidates, and working capital as well as general corporate purposes. The company is involved in anti-cancer therapies that target the enzyme telomerase.
| Issuer: | Geron Corp.
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| Issue: | Follow-on stock offering
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| Gross proceeds: | $54 million
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| Shares: | 6 million
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| Greenshoe: | 900,000 shares
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| Price: | $9.00 per share
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| Bookrunner: | UBS Investment Bank
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| Co-managers: | SG Cowen & Co., Needham & Co., Lazard Capital Markets, Rodman & Renshaw and WBB Securities
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| Pricing date: | Sept. 15
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| Settlement date: | Sept. 21
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| Ticker: | GERN
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| Stock price: | $9.99 at close Sept. 15
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