Sophiris Announces Share Consolidation in Preparation for U.S. IPOWednesday, August 14, 2013
La Jolla-based Sophiris Bio Inc., on track to complete a $65 million initial public offering on the Nasdaq later this week, announced a 52-1 consolidation of its common shares traded on the Toronto Stock Exchange.
About $28.5 million of the U.S. initial public offering will fund the phase 3 clinical trials for its enlarged prostate treatment drug, and $10.5 million will pay for further clinical development for the drug, according to regulatory filings.
Sophiris, which already trades on the Toronto Stock Exchange, will begin trading on the Nasdaq under ticker symbol SPHS. It said the reverse stock split is to increase the share price to meet pricing requirements for a Nasdaq listing.
It said it expects to net $57 million from its offering of 5 million shares.
The number of issued and outstanding common shares will be reduced from about 164 million to about 3.1 million, the company said.
Sophiris moved its headquarters to La Jolla in 2011 and employs about 10. It was founded in Vancouver, B.C., in 2002. Global investment firm Warburg Pincus LLC invested $28.4 million into Sophiris, and held about a 40 percent stake in the company. However, Warburg Pincus sold 50 million Sophiris shares to Tavistock Life Sciences LLC earlier this month.
— Meghana Keshavan