New York, Nov. 3 - Hythiam, Inc. priced a $38 million follow-on offering of 8 million shares at $4.75, discounted from Wednesday's closing stock price of $5.17.
The sale has a greenshoe for 1.2 million shares.
UBS Investment Bank was bookrunner with First Albany Capital Inc. as co-manager.
The off-the-shelf deal had previously been increased from a planned size of 7.5 million shares but the expected net proceeds were lower as the company's stock price sank.
Hythiam now puts net proceeds at $35 million, lower than the $43.6 million estimated when the number of shares was raised and well below the $53.6 million forecast when the deal was announced. At that time, its stock was trading at $6.72.
The Los Angeles-based company focused on physiological treatments for alcoholism and other substance dependency plans to use proceeds to fund clinical research studies, marketing initiatives and other general corporate purposes.
Issuer: | Hythiam, Inc.
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Issue: | Follow-on offering of common stock
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Amount: | $38 million
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Shares: | 8 million
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Greenshoe: | 1.2 million
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Price: | $4.75
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Pricing date: | Nov. 2, after close
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Bookrunner: | UBS Investment Bank
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Ticker: | "HYTM"
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