Kosan Biosciences Offers 7M Shares

HAYWARD, Calif. (AP) -- Biotechnology company Kosan Biosciences Inc. on Friday said it will sell roughly 7 million shares of its common stock at $6.50 per share in a direct offering to institutional investors.

Excluding placement agent fees and other expenses, the company expects to get roughly $45.5 million in proceeds.

The $6.50 per share offering represents a 6.5 percent discount over Thursday's closing price of Kosan's stock at $6.95.

The deal is expected to close on Feb. 13.

Cowen and Co. LLC is acting as the lead placement agent for the offering. Leerink Swann & Co. and Rodman & Renshaw LLC are co-placement agents.

Shares of Kosan dropped 42 cents, or 6 percent, to $6.53 in morning trading.