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CuraGen Completes $15 Million Private Placement
Pequot Capital snags 1.5 million new common shares at $10 per
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Business New Haven
9/20/1999
By: Michael C. Bingham
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The New Haven-based CuraGen Corp. September 8 completed a $15 million private placement with Pequot Capital Management Inc. Pequot agreed to the purchase of 1.5 newly issued shares of CuraGen common stock at a per-share price of $10.
CuraGen says it will invest to proceeds of the Pequot placement in the continued refinement and expansion of its base of functional genomics technologies and databases. These technologies, say CuraGen officials, are driving near-term revenues by advancing product discovery and development efforts by CuraGen collaborators.
CuraGen is seeking to build long-term value by developing products for the treatment of complex diseases including diabetes and other metabolic disorders, cancer and auto-immune and cardiovascular diseases.
"Pequot traditionally invests in leading high-technology companies," said Pequot Chairman and CEO Arthur Samberg. "We believe CuraGen is a strong investment opportunity given the way they have uniquely integrated powerful genomic and information technologies."
Said CuraGen founder, Chairman and CEO Jonathan M. Rothberg: "This investment provides further endorsement of CuraGen's business strategy. We anticipate utilizing the funds derived from this financing to further advance CuraGen's technology platform and propel the development of the company's proprietary drug pipeline."
Wall Street too endorsed the move - at least on the day of the announcement. CuraGen stock (NASDAQ: CRGN) rose 1 1/8 to close at $11.56.
At $10 a share, Pequot got a sweeter deal than investors who jumped on CuraGen's initial public offering (IPO) last year. At that time, common shares debuted at $11.50.
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