Dendreon Corporation (NASDAQ: DNDN) is selling stock to raise cash. The company has announced a spot secondary offering of 10.7 million shares in a public secondary offering of common stock. This comes on the heels of an exponential stock gain, even after insiders unloaded enough stock to secure millionaire statuses for quite some time.
Deutsche Bank acted as the sole underwriter and has an overallotment option to purchase up to 1,279,166 shares of stock.
The good news is that capital will go directly into the company will go exactly for what shareholders would want to see it used for. The proceeds will be to develop manufacturing facilities, a distribution network, an information technology platform and other infrastructure, to hire sales and marketing, manufacturing, quality and other personnel in preparation for the licensure by the FDA and commercialization of PROVENGE, and for general corporate purposes, including working capital.
Dendreon traded north of $27.00 after the peak of the news. Shares closed down at $19.76 yesterday, and shares are trading at $19.25 right before the open.
Jon C. Ogg
May 8, 2009
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