Sequenom, Inc. (NASDAQ: SQNM) became a very painful stock for many investors after the problems surfaced over its test results. While things have recovered substantially at the company, pressure has renewed on management now that the company has announced a stock sale to raise capital.
No formal share count nor financial terms were made available in the filings. Its filing of a shelf registration made back in September was for any mix of debt, equity, and other securities for up to $150 million.
As far as a use of proceeds: “We intend to use the net proceeds from this offering for general corporate purposes, which may include research and development expenses, such as expenses related to our validation studies for our Trisomy 21 test, capital expenditures, working capital, and general administrative expenses. We may also use a portion of the net proceeds to acquire or invest in complementary businesses, products and technologies. Although we have no specific agreements, commitments or understandings with respect to any acquisition, we evaluate acquisition opportunities and engage in related discussions with other companies from time to time.”
Jefferies & Company is the sole book-running manager; and Lazard Capital Markets and Piper Jaffray are listed as the two co-managers in this public secondary offering.
The company did note that this shares sale is subject to market conditions, and there can be no assurance that it will come. Generally, these offerings are made within days or hours of an open-ended offering of this sort. Sequenom has already filed a shelf registration statement with the SEC and that was declared effective on October 5, 2010.
Shares of Sequenom closed down 0.7% at $6.81 today on rather light trading volume of close to 1.1 million shares. The after-hours session has shares down more than 6% around $6.40 versus a 52-week range of $3.82 to $8.65.
You can join our free daily email distribution list to hear more about dividend trends, analyst upgrades and downgrades, top day trader and active trader alerts, news on Buffett and other investment gurus, IPOs, secondary offerings, private equity, and more.
JON C. OGG
The #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
