Javelin shares down on $39.3M public offering
Javelin Pharmaceuticals Inc.’s stock (AMEX: JAV) dipped this morning on heavy volume after the Cambridge, Mass.-based drug developer announced plans to sell 7.1 million shares of its common stock in an underwritten public offering at a price of $6 per share.
The firm expects to receive net proceeds of about $39.3 million from the sale. It plans to use the money to fund clinical research and development programs, the commercialization and manufacturing of its product candidates, and for other general corporate purposes.
The offering is expected to close on or about May 16.
Javelin has granted the underwriters a 30-day option to purchase up to an additional 1.065 million shares of common stock to cover over-allotments, if any.
J.P. Morgan Securities Inc. is the book-running manager of the offering. Pacific Growth Equities LLC, Leerink Swann & Company, Allen & Company LLC, Fortis Securities LLC and Punk, Ziegel & Company are co-managers of the offering.
By 11:34 AM ET, Javelin’s shares were down $0.20, or 3.3%, to $5.86. Volume was exceptionally heavy – at 1.3 million shares, compared with an average three-month daily volume of 215,000 shares.
The stock has traded between $2.65 (on June 8) and $7.60 (on March 15) in the past year.
Javelin moved from the Over-the-Counter Bulletin Board to the American Stock Exchange in July 2006. In 2006, the company reported a net loss of $17.8 million on revenue of $840,000.
