Cell Genesys terminates $75 million committed equity financing facility

By Devika Patel

Knoxville, Tenn., April 9 - Cell Genesys, Inc. gave written notice to Kingsbridge Capital Ltd. that it is terminating its $75 million committed equity financing facility, according to an 8-K filed Thursday with the Securities and Exchange Commission.

The three-year facility was arranged with Kingsbridge on Feb. 5, 2007.

As of the termination date, April 8, the company has raised $23 million by selling 7.1 million common shares to Kingsbridge. The agreement included up to 11.6 million shares, and the company could have sold approximately 4.5 million more shares under the facility.

However, Kingsbridge is not obligated to purchase the shares at prices below $1.75, and the company's stock was trading below this threshold as of April 8.

The agreement obligated the company to provide one business day's notice to Kingsbridge upon terminating the agreement. Accordingly, the facility will be terminated on April 9 without termination penalties.

Based in South San Francisco, Calif., Cell Genesys develops and commercializes treatments for cancer.

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