VeriChip IPO Braces for Lower IPO Terms

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By Douglas A. McIntyre Published
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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

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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