NEW YORK, March 29 – Packard Biosciences has indefinitely postponed a planned follow-on offering of 10 million shares of its common stock, the company said Thursday.
The offering, which the company had announced in early February, is being postponed due to the downturn in the market, said Mike Zebarth, a company spokesman. Packard has filed an amended registration with the US Securities and Exchange Commission to reflect the change of plans.
The company said it would continue to monitor market conditions in order to assess when to proceed with the offering.
Packard had planned to sell three million of the shares, while shareholders, including CEO Emery Olcott and Senior Vice President Richard McKernan, intended to sell an additional seven million shares. Approximately 4.5 million shares planned to be sold included those issued in connection with Packard’s acquisition of GSI Lumonics’ life sciences division, which it completed in October.
On Thursday the company's share price closed up 5/8, or 10.8 percent, at 6 7/16. Earlier this month the share hit its 52-week low of 3 15/16.
Packard had estimated it would raise a net of $41.25 million from the sale of its three million shares, which it said it planned touse for “general corporate purposes.”
One month ago, Packard Completed the sale of Canberra Life Sciences for $170 million. Earlier the company said it expected to raise $120 to $130 million in net proceeds from this sale. The company had actual cash and cash equivalents of $52.8 million, at the end of September 2000, the last date for which such a figure was available.