Follow-on market not so hot
More evidence that the market is cooling was provided by two withdrawn follow-ons and a watered-down deal by gene therapy company AVGN, which raised $26 million through the sale of 1 million shares at $26, in a follow-on underwritten by Salomon Smith Barney; CIBC World Markets; and ING Barings. On Feb. 22, AVGN filed to sell 4 million shares when its stock price was $69.188. Had the company sold the proposed shares at the price prior to filing, it would have raised $276.8 million. AVGN was down $3.313 (11 percent) to $26.50 on Thursday.
Genome Therapeutics (GENE), a genomics-based drug discovery company, said it withdrew its follow-on due to market conditions. On March 16, the company filed to sell 3 million shares underwritten by CIBC World Markets; Warburg Dillon Read; Dain Rauscher Wessels; and Tucker, when its stock price was at $36.875. ...