BioCentury
ARTICLE | Finance

CRTQ avoids sweetening the pot

February 8, 1993 8:00 AM UTC

The common stock conversion rights issued in conjunction with Cortech Inc.'s 4.6 million unit IPO on Nov.24 have expired. CRTQ was one of two companies, the other being Ligand Pharmaceuticals Inc. (LGNDA), which closed IPOs with stock sweeteners in November.

CRTQ's conversion rights expired because its closing price for 40 consecutive trading days had averaged 50 percent above the $8 IPO price. The rights provided that additional shares of common stock, up to one-half share per share held, would be issued if the stock failed to appreciate 50 percent during the 18 months following the IPO. The rights expired as soon as the stock hit its benchmark. ...