Skip to main content
Premium Trial:

Request an Annual Quote

CuraGen Prices Private Placement

NEW YORK, Feb. 10 (GenomeWeb News) - New Haven, Conn.-based CuraGen today announced the pricing of a planned private placement of convertible subordinated notes due in 2011.

The private-placement offering is targeted to raise as much as $100 million, bearing an interest rate of 4 percent, and is due in 2011, the company said in a statement. The notes will convert into 103 shares of the company's common stock for each $1,000 in the principal amount of the notes offered, representing a conversion price of $9.70 per share, subject to adjustment in certain circumstances. The pricing represents a premium of approximately 40 percent above the price of company's stock at the end of the day on Feb. 10. The placement is expected to close on Feb. 17, subject to customary closing conditions, the company said.

Additionally, the company has granted a 30-day option to the initial purchaser of the notes to purchase up to an additional $20 million aggregate principal amount of the notes to cover over-allotments, if any.

The company said it plans to use a portion of the net proceeds to repay its existing debt, and the remainder for working capital, general corporate purposes, and possibly for future acquisitions.

CuraGen has subordinated convertible debt of $150 million due in February of 2007. The company last week reported that it held cash and investments of $343.6 million as of Dec. 31, 2003.

The Scan

Guidelines for Ancient DNA Work

More than two dozen researchers have developed new ethical guidelines for conducting ancient DNA research, which they present in Nature.

And Cleared

A UK regulator has cleared former UK Prime Minister David Cameron in concerns he should have registered as a consultant-lobbyist for his work with Illumina, according to the Financial Times.

Suit Over Allegations

The Boston Globe reports that David Sabatini, who was placed on leave from MIT after allegations of sexual harassment, is suing his accuser, the Whitehead Institute, and the institute's director.

Nature Papers on Esophageal Cancer, Origin of Modern Horses, Exome Sequencing of UK Biobank Participants

In Nature this week: genetic and environmental influences of esophageal cancer, domestic horse origin traced to Western Eurasian steppes, and more.