By Sheri Kasprzak
Atlanta, April 22 - Solexa Inc. said it will raise $32.5 million in a private placement.
The company plans to sell 8,125,000 shares at $4.00 each to a group of institutional investors in the health care sector, led by ValueAct Capital Partners LP.
The investors also received warrants for 4.1 million shares, exercisable at $5.00 each.
The deal will close in two tranches, the first of which will close April 25 for 2.1 million shares and the second of which will close after shareholder approval is received.
SG Cowen & Co. LLC is the placement agent in the offering.
In other news, Solexa announced that G. Mason Morfit, a partner of ValueAct Capital, was appointed to its board of directors.
Based in Hayward, Calif., Solexa develops a platform for genetic analysis. The company intends to use the proceeds to develop and launch its first-generation sequencing-by-synthesis molecular array platform for genetic analysis. Some of the proceeds will also be used to repay a loan to Silicon Valley Bank.
| Issuer: | Solexa Inc.
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| Issue: | Stock
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| Amount: | $32.5 million
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| Shares: | 8,125,000
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| Price: | $4.00
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| Warrants: | For 4.1 million shares
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| Warrant strike price: | $5.00
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| Placement agent: | SG Cowen & Co. LLC
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| Investors: | ValueAct Capital Partners LP (lead)
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| Pricing date: | April 22
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| Stock price: | $7.18 at close April 21
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