Gene Logic plans initial stock issue Firm hopes to sell 3 million shares to raise $30 million

October 08, 1997|By Mark Guidera | Mark Guidera,SUN STAFF

Gene Logic Inc. of Columbia filed a request for an initial public offering yesterday with the Securities and Exchange Commission, seeking to raise $30 million to $36 million.

In the registration statement for the filing, Gene Logic said it intends to sell 3 million shares at a price of $10-$12.

The company also said yesterday that the pharmaceutical division of Japan Tobacco Inc., Tokyo's former state-owned tobacco monopoly, has agreed to purchase $3 million in Gene Logic's common stock in a private transaction to occur at the time of the public offering. Those shares will be purchased at the same price as the shares being offered, Gene Logic said.

Gene Logic has an alliance with Japan Tobacco in the field of renal disease.

Because of SEC regulations, neither company officials nor its underwriters could comment on yesterday's announcement.

The SEC must review the filing before the company can determine a date for the offering.

The company would like to go public late this year if market conditions are right, said Dr. Michael Brennan, Gene Logic's president, in earlier interviews.

Gene Logic's filing comes less than three months after the firm raised $20 million in private financing from a group of U.S., European and Canadian investors. The deal was its second round of private financing.

That money is being used to expand the company's computerized database of human genes and the computer technology to chart how genes change as diseases progress and during treatment. The company is also upgrading software to accelerate the identification of active genes and to help drug companies quickly establish which drug compounds look most promising.

In June, Gene Logic also announced a deal worth as much as $25 million with Procter & Gamble Pharmaceuticals.

Under the agreement, the two companies are to work on determining which genes play a role in heart disease, the nation's No. 1 killer.

Gene Logic moved to Columbia from New Haven, Conn., in April 1996.

The state has invested $500,000 in Gene Logic and has a 5 percent equity stake in the firm. The value of that stake should jump substantially should the public offering go through.

BancAmerica Robertson Stephens of San Francisco will be the lead underwriter for the IPO, if it is cleared by the SEC. Two New York companies, Hambrecht & Quist and UBS Securities Inc., will also underwrite the offering.

Pub Date: 10/08/97

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