Sangamo makes $20M+ stock offer

Sangamo BioSciences of the USA has priced an underwritten offering of 3.1 million shares of common stock, at a price per share of $6.75, resulting in net proceeds to the company of around $20.15 million after deducting the underwriting discount. The underwriter has been granted an option for a period of 30 days to purchase up to an aggregate of 465,000 additional common stock from the company to cover over-allotments, if any.

Sangamo intends to use the proceeds from the financing to continue the development of its ZFP Therapeutic product candidates and research programs and for other general corporate purposes. Piper Jaffray acted as the sole underwriter for this offering.

"We believe that the initial results of our clinical and commercial development efforts put us in a position to complete this firmly underwritten offering quickly, without a lengthy marketing effort," said Edward Lanphier, Sangamo's chief executive. "As we prepare to enter into our first Phase II clinical trial, this $20.15 million of additional capital puts us in a stronger position to accelerate this program and to simultaneously bring additional ZFP Therapeutic programs into the clinic. As a result of this financing, we now project ending fiscal year 2006 with approximately $50.0 million in cash and cash equivalents, instead of $30 million as previously projected," he added.