Sangamo Prices Share Offer at $6.50 Each
Friday June 16, 10:26 am ET
Sangamo BioSciences Prices Offering of 3.1 Million Shares at $6.50 Per Share

RICHMOND, Calif. -- Sangamo BioSciences Inc. (NASDAQ SGMO), a genetic therapy development company, said Friday it priced an offering of 3.1 million shares at $6.50 apiece.

The company received about $20.2 million in net proceeds and plans to use the funds to continue the development of its ZFP Therapeutic product candidates and research programs and for other general corporate purposes.

Piper Jaffray was the sole underwriter of the offering and has been granted a 30-day option to buy up to 465,000 additional shares to cover any overallotments.

"As we prepare to enter into our first Phase 2 clinical trial, this $20.15 million of additional capital puts us in a stronger position to accelerate this program and to simultaneously bring additional ZFP Therapeutic programs into the clinic. As a result of this financing, we now project ending fiscal year 2006 with approximately $50 million in cash and cash equivalents, instead of $30 million as previously projected," President and Chief Executive Edward Lanphier said in a statement.

The securities were offered pursuant to an existing shelf registration statement.

Shares of Sangamo plugned 61 cents, or 8.3 percent, to $6.74 in morning trading on the Nasdaq, where they have traded in a 52-week range of $3.52 to $8.28.