MethylGene PIPE sets market alight
This article was originally published in Scrip
Executive Summary
Investors were clearly impressed with the news that MethylGene, the Canadian biopharmaceutical company, was able to raise Can$33.7 million ($34.5 million) in a private placement to institutional investors (private investment in public equity or PIPE), when it only had a market cap of $5.1 million and was effectively running on fumes. "There was clearly a disconnect between the value of our technology and where the stock was trading. We had Can$ 10 million in cash on 30 September last year and we told the market that we had cash resources to take us to the end of the first quarter," president and ceo Charles Grubsztajn told Scrip.