Biopure files for $51.75 million follow-on stock offering

By Angela McDaniels

Seattle, Oct. 17 - Biopure Corp. filed for an up to $51.75 million follow-on offering of stock in an S-1 registration with the Securities and Exchange Commission on Friday.

The offering will include up to $23 million of class A common stock and up to $28.75 million of warrants to purchase class A common stock.

The warrants will be exercisable for five years following the issue date. Beginning six months after the issue date, the company may compel holders to exercise their warrants if the average share price is more than 150% of the exercise price of the warrants.

The number of warrants to be offered per share of class A common stock and the warrant exercise price are to be determined. The weighted average exercise price for the 24.54 million warrants Biopure had outstanding at Aug. 13 is $1.44.

The company's stock closed at $0.92 on Wednesday (Nasdaq: BPUR).

The underwriter for the offering is Dawson James Securities, Inc., which will receive warrants to purchase $3.43 million of class A common stock as compensation.

Dawson James will also be granted a greenshoe - included in the maximum amounts.

The offering is expected to settle sometime in November.

Proceeds will be used for general corporate purposes.

Biopure is based in Cambridge, Mass., and develops, manufactures and markets intravenous pharmaceuticals that deliver oxygen to the body's tissues.

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