Dendreon Files To Raise Capital (DNDN)
Dendreon Corp. (NASDAQ: DNDN) has just filed an automatic shelf registration statement with the SEC. This will allow the company to raise capital, although no terms nor dollar amounts were listed initially (see below). As with most initial shelf registration of this sort, no underwriters were named as well (see update below).
- Update: After 5:0 PM EST Dendreon disclosed that it was going to sell 15 Million shares via lead underwriters JPMorgan Securities and Deutsche Bank Securities.
The net proceeds from the sale of common stock under this prospectus are earmarked to fund Dendreon’s commercialization activities for Provenge, including the investment in new facilities for the expansion of manufacturing capabilities, investment in sourcing of components for Provenge, the hiring of additional personnel and investment in specialized technology systems. Also noted as a use of funds is funding additional clinical trials for Provenge and for Dendreon’s other product candidates.
The use of funds is one that goes on as well. The company will fund other research and preclinical development activities for active immunotherapies, monoclonal antibodies and small molecule products. It can also satisfy third party obligations, and can use funds for general corporate purposes.
OUTSTANDING SHARES TODAY: As of the date of this prospectus, its certificate of incorporation, authorizes it to issue up to 260,000,000 shares of capital stock of which 250,000,000 shares are of common stock, par value $0.001 per share, and 10,000,000 shares are of preferred stock, par value $0.001 per share. As of December 7, 2009, 116,002,033 shares of common stock and no shares of preferred stock were issued and outstanding.
MOST RECENT BALANCE SHEET DATA: At the end of September, Dendreon had cash and equivalents of over $177.3 million, short-term investments of $over $71 million, and long-term investments of over $16 million.
Jon C. Ogg
December 8, 2009
