Compugen Has No Intention of Issuing Equity at Current Market Value
Company Estimates That Existing Resources Are Sufficient to Fund Planned Operations for Approximately One and a Half Years
Compugen (NASDAQ:CGEN)(TASE:CGEN)announced today that it has no intention of issuing equity at the company’s current market value. This statement was made in response to questions from shareholders and others.
Mr. Martin Gerstel, chairman of Compugen stated, “We have made no announcements that would account for the substantial decline in the price of our shares during the past few days. However, in discussions with shareholders and others, a great deal of concern has been raised that the Company’s financial situation would require it to seek additional capital during the next few months regardless of market conditions or the price of its shares. This is not correct. The Company has cash on hand and marketable securities, including the Evogene shares owned by Compugen, that we estimate would be sufficient to fund the Company’s currently planned operations well into 2010.”
Mr. Gerstel continued, “Compugen’s planned operations for 2009, which include certain changes due to the current situation, will be outlined by me in a presentation next Wednesday, November 12th at the Rodman and Renshaw Healthcare Conference. Also, in order to avoid any misunderstanding with respect to the 2,150,000 Evogene shares held by the Company, we view these shares as an excellent long term investment and have no interest or plans to sell them. However, they do represent a potential source of cash should that become necessary.”
