Zosano will price IPO of 4.3 million shares between $10.00 and $12.00

Ladenburg Thalmann and Roth Capital Partners to assist as bookrunners

By Devika Patel

Knoxville, Tenn., Jan. 26 – Zosano Pharma Corp. will sell 4.3 million common shares in its initial public offering with a 30-day greenshoe option of 645,000 additional shares, according to a Form S-1/A filed Wednesday with the Securities and Exchange Commission. The company has registered up to $59.34 million of stock.

The deal was announced June 24 and the company reported on July 16 that it planned to sell 6.4 million common shares with a greenshoe 960,000 shares.

The shares will be sold at a price expected to fall between $10.00 and $12.00 per share.

Ladenburg Thalmann and Roth Capital Partners are the bookrunning managers.

Eli Lilly and Co., one of the company’s collaborators, has agreed to buy up to $15 million of stock in a separate, concurrent private placement. The placement shares will be sold at the same price as the stock sold in the IPO. In addition, existing investors have indicated an interest in investing up to $5 million in the IPO.

Proceeds will be used for clinical development and clinical trials, to expand and enhance manufacturing capabilities, to make interest and principal payments under the company's term loan facility with Hercules Technology Growth Capital and for working capital and general corporate purposes.

The pharmaceutical company is based in Fremont, Calif. The company intends to list its common stock on the Nasdaq under the symbol “ZSAN.”

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