Sequenom Secures Turnaround Capital (SQNM)
Sequenom, Inc. (NASDAQ: SQNM) must really have its woes of 2009 behind it. If not, raising capital might be impossible. This morning came news that it has raised over $50 million in a private placement of securities. The problem is that this is at one hell of a discount.
The company has entered into an agreement to issue and sell 12,435,000 shares of its common stock at $4.15 per share to certain investors. The gross proceeds of the private placement are expected to be approximately $51.6 million. $4.15???? Shares closed at $5.37 yesterday.
Sequenom says that it intends to use the net proceeds to advance its research, development and commercialization of various diagnostic tests. And it also has the “for general corporate purposes” included in the lot. The private placement is expected to close on or about May 17, 2010.
Jefferies is the sole lead placement agent, while Lazard Capital Markets is the co-placement agent.
The market is not quite at open. At 9:29 AM EST we have seen shares fall more than 6% to $5.01, still well above the private placement price. The market cap before the effects of this placement was listed as roughly $333 million. The 52-week range is $2.55 to $8.65, but that stock is down much more from when this was treated as the next Holy Grail stock.
This may be very dilutive, but if this is not turnaround capital then nothing else is either.
JON C. OGG
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So what do you think the future of SQNM is? And the target Stock price?