Into the darkness

The placement of large blocks of shares with long-term institutional investors may seem unattainable for many small cap biotechs. But Liquidnet Holdings Inc., a so-called "dark pool" trading platform, is now targeting these companies - offering insight into demand for their shares and the ability to complete large block share sales that minimize price volatility.

Although the firm has been wooing biotechs for about a year, the companies thus far have been interested only in the data Liquidnet provides about shareholder demand. But Liquidnet hopes biotechs will use it to execute transactions, including at-the-market (ATM) offerings, share repurchases, follow-ons and the trading of private company shares...