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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.

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