Hythiam increases follow-on sale to 8 million shares as stock price falls

New York, Oct. 18 - Hythiam, Inc. increased the size of its planned follow-on sale to 8 million shares from the previously announced 7.5 million as its stock price fell.

The greenshoe was also increased, to 1.2 million shares from 1.125 million shares.

But net proceeds are now estimated at $43.6 million, assuming an offering price of $5.90 a share, according to a 424A filing with the Securities and Exchange Commission. In its original filing on Oct. 11, Hythiam had estimated net proceeds at $46.6 million based on a price of $6.72.

The over-allotment option would boost net proceeds to $50.2 million under the latest terms compared to $53.6 million estimated earlier.

UBS Investment Bank is the bookrunner and First Albany Capital is co-manager, both as previously.

The Los Angeles-based company, which focuses on physiological treatments for alcoholism and other substance dependency, said it plans to use proceeds to fund clinical research studies and pursue clinical data, to implement direct marketing initiatives and local advertising to expand awareness about its products and for other general corporate purposes.

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