Dynavax Technologies Corporation (NASDAQ:DVAX) Up 11.7% In Last Week’s Trading


Dallas, Texas 10/31/2013 (Financialstrend) – The drug maker Dynavax Technologies Corporation (NASDAQ:DVAX with a market capitalization of $243 million, has posted an 11% increase in its market valuation in the past one week of trading. This spurt in the value of the stock was accomplished on the back of announcement on October 25 by Dynavax of engaging underwriters to process and hand hold two parallel issue of stock. The drug firm hopes to harness $132 million post the successful conclusion of the transaction.

In the first of the offerings, the company has tied up with underwriting company to make a public offer to sell 79.57 million shares of common stock. It has priced the stock at $1.075 per share which translates to an 18.5% discount.

In a related development, the company has entered into a second agreement with the same underwriter to sell 43,430 shares of series B preferred stock. The offer price fixed by the firm is $1075 per preferred share. The underwriters have signed off to buy the whole offering at $1021.25 per share. The preferred stock can be traded with 1000 shares of the company’s common stock.

The drug research and manufacturing firm hopes to use the proceeds to further continue its research efforts to develop target drugs. At 11:00 am E.T on October 30, the stock was trading at $1.32, down 0.74% in comparison to its previous day close. The company is expected to post its 3Q results in the next few days. Investors in the stock would be hoping that the drug maker is able to repeat its 2Q performance, which saw its sales go up by 25% in comparison to 2Q12. In the trailing 12 months, the drug maker has posted sales of $10.2 million with net loss of $76 million. In the past 1 year the stock has posted net loss of 68%.