VeriChip Corporation (CHIP-NASDAQ) has lowered its proposed IPO terms, so the cult following in this stock may be feeling like it is a Doomsday cult. This is the spin-off out of Applied Digital (ADSX-NASDAQ) that develops and sells RFID-radio frequency identification systems, primarily for use in the healthcare industry.
The deal is set to price later this morning but now it plans to sell 3.1 million shares, down from 4.3 million originally indicated; and the pricing is looking to be $6.50, which is at the lower-end of its proposed $6.50 to $8.50 range.
The lead underwriter is Merriman Curhan Ford, and CE Unterberg Towbin and Kaufman Bros. are the co-managers.
ADSX is down 1% pre-market but has been down as much as 4% pre-market. Digital Angel (DOC-AMEX) is the other backdoor play in this one. Unfortunately it appears that people are going out of the backdoor instead of sneaking in that way.
Jon C. Ogg
February 9, 2007