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million from a stock sale to a single institutionapl investor in a deal aimed at beefingg up its lowcash reserves, but one that earnec a thumbs-down from Wall Street. Amid a harsh economicd environment, the Gaithersburg biotech raisedthe funding, $6 million in grosw proceeds, through selling 9.6 million shares of its commob stock at 62 cents apiece. The investodr also will receive 9.6 million warrants to buy more stoc k at thesame price. The deal’s share price come s at a 21 percenf discounton GenVec’s (NASDAQ: closing price of 79 cents on The sale, which now represents nearl 10 percent ownership of the company, hikesa its number of outstanding shares to 98.2 million.
The new money offefr some financial salve to acompany that’s been seeking a largefr funding partner to help it pay clinical bills for its key a pancreatic cancer treatment that’s in the finalk stages of trials. As of the end of GenVec counted $12 million in cash and equivalents, enougb it said to last it into the second quarter of next but analysts had expressed concerns aboutthe company’s financial health througyh that time period. This latest stocl offering hasn’t appeased those concerns. Investors drove down GenVec’zs stock price by 15 cents, or nearlt 19 percent, to 64 centd by Thursday afternoon.
The deal, set to close was arranged by placement agentr MerrimanCurhan Ford.
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