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$47M raised through At-the-Market (ATM) Offerings in Q2/11

$47M raised through activity of 13,  At-The-Market (ATM) offerings of common stock in Q2 of FY11.


The dollar amount represents a 2% decrease in the use of ATMs in the life sciences sector compared to the Q2 of FY10.

  • 7 new ATMs were signed up inQ2, 11 in the first half of the year, and 4 so far in Q3/11. Life sciences ATM offerings in the 1st 1/2of 2011 raised $113M compared to $88M in the first half of 2010, a 29%increase.

Life sciences companies that signed up to utilized ATMs to raise capital in Q2/11included:  Aastrom Biosciences (ASTM); Curis (NASDAQ:CRIS); Cytokinetics (NASDAQ:CYTK) and MediciNova (NASDAQ:MNOV). (Source: Brinson Patrick Securities)

The Bottom Line:
ATM offerings provide an efficient means of raising equity capital over time, making them ideal for raising general working capital, funding specific projects, funding research and development, and paying off debt. ATM offerings provide flexibility, efficiency, control, discretion and just-in-time capital with minimal dilution of stock when managed by an experienced ATM underwriter. With an ATM, an exchange listed company incrementally sells newly issued shares into the trading market through a designated broker-dealer at prevailing market prices, rather than via a traditional underwritten offering of a fixed number of shares at a fixed price all at once. ATMs enable publicly traded companies to tap into the existing secondary market for shares on an as-needed basis. ATM offerings are generally less expensive and less complicated to execute than traditional equity offerings. There are no required executive road shows. Total dollars raised decreased by 2% from Q2/10 and increased by 29% from 1st 1/2 of FY10.