LAB Research underwriters exercise greenshoe, upping IPO to C$46 million

By Angela McDaniels

Seattle, Sept. 5 - LAB Research, Inc. said the underwriters of its initial public offering of common stock exercised their C$6 million over-allotment option in full, raising the deal to C$46 million.

The 1.5 million shares sold to cover the over-allotment were previously held by LAB Research's former parent company, LAB International, Inc., which will receive the proceeds from the greenshoe upon closing on Sept. 12.

LAB Research priced 10 million shares at C$4 via joint bookrunners Desjardins Securities, Inc. and Orion Securities, Inc. on Aug. 2. Versant Partners, Inc., Westwind Partners, Inc., Jennings Capital, Inc., Paradigm Capital, Inc. and Oppenheimer & Co., Inc. were co-managers.

Of the 10 million shares issued, LAB International sold 6.25 million and received C$25 million in proceeds. LAB Research raised C$15 million with the sale of the remaining 3.75 million shares, the proceeds of which will be used to expand its three main sites over the next 12 months, for working capital and to support the growth of its activities. The company has five facilities in all, located in Canada, the United States, Denmark and Hungary.

Following the closing of the greenshoe, LAB International and its subsidiaries will hold 35.5% of the 18 million outstanding shares of LAB Research.

LAB Research, based in Laval, Quebec, provides non-clinical contract research services to the pharmaceutical and biotechnology industries.

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