REDWOOD CITY, Calif., Nov. 13 /PRNewswire-FirstCall/ -- Maxygen, Inc. (Nasdaq: MAXY), a biotechnology company focused on the development of improved protein drugs, today announced that it is commencing a modified "Dutch Auction" tender offer to repurchase 6,557,377 shares of its common stock, representing approximately 17% of Maxygen's outstanding shares. The closing price of Maxygen's common stock on the Nasdaq Global Market on November 12, 2009 was $5.03.
Maxygen intends to finance the repurchases from cash on hand. At September 30, 2009, cash, cash equivalents and marketable securities totaled $203.0 million, $20.3 million of which was held by Maxygen's majority-owned subsidiary, Perseid Therapeutics LLC, and may only be used for Perseid's operations.
Under the tender offer, stockholders will have the opportunity to tender some or all of their shares at a price within a range of $5.30 to $6.10 per share. Based on the number of shares tendered and the prices specified by the tendering stockholders, Maxygen will determine the lowest per share price within the range that will enable it to buy 6,557,377 shares, or such lesser number of shares that are properly tendered. If more than 6,557,377 shares are properly tendered at or below the determined price per share, Maxygen will purchase shares tendered at the determined price per share, on a pro rated basis. Additionally, if more than 6,557,377 shares are properly tendered, the number of shares to be repurchased by Maxygen pursuant to the tender offer may, at the discretion of Maxygen, be increased by up to 2% of Maxygen's outstanding shares, or approximately 787,726 shares, without amending or extending the tender offer.
Stockholders whose shares are purchased in the offer will be paid the determined purchase price per share net in cash, without interest, promptly aft
|SOURCE Maxygen, Inc.|
Copyright©2009 PR Newswire.
All rights reserved