Nektar sells stock to fund Aerogen purchase
Tuesday August 16, 12:01 pm ET
Biotechnology company Nektar Therapeutics has agreed to sell 1.44 million shares of common stock to an institutional investor to raise funds for the purchase of Aerogen Inc.
Nektar(Nasdaq: NKTR - News) of San Carlos, develops technology for administering drugs by inhaling them rather than by injecting them.
The company will sell the stock shares for $16.71 each and expects to receive net proceeds of about $23.6 million. Nektar, which develops drug delivery technologies, has agreed to pay $32 million in cash and stock for Aerogen (Pink Sheets: AEGN - News) of Mountain View which makes products to improve the treatment of respiratory problems.
The investor buying the Nektar shares also has the option to buy more shares up through Sept. 16. Nektar has the potential of gaining an additional $7.9 million in net proceeds if the option is fully exercised. The company did not reveal the identity of the institutional investor.
Published August 16, 2005 by the Silicon Valley/San Jose Business Journal
