85.7 F
San Fernando
Friday, Mar 29, 2024

Biotech Seeks $100 Million In Offering

Simulations Plus on Aug. 4 announced a registered public offering of its shares to pursue a possible merger or acquisition. Gross proceeds are expected to be $100 million. The share price fell the day of the announcement. The Lancaster drug modeling software company offered, through Aug. 10, to sell more than 1.8 million of its common shares at $55 per share; underwriters may purchase up to 272,727 additional shares through Sept. 4. Simulations was quick to add that it presently has no commitments or agreements to enter into an M&A with a specific company. “The target list, if you will, might expand in terms of its valuation size as we go forward,” Shawn O’Connor, chief executive of Simulations Plus, said during the company’s earnings call in July. “We’ve done it on kind of an every three-year basis and I hope that that window was shortened and we’re able to move, identify and take action on appropriate target candidates on a quicker pace here.” O’Connor mentioned that previous acquisitions were $20 million and below in size. With funding from shares, the company hopes to leap to a higher tier.

Featured Articles

Related Articles