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article imageVascular Biogenics bizarrely terminates IPO

By Tim Sandle     Aug 16, 2014 in Business
The Israeli firm Vascular Biogenics has withdrawn its initial public offering (IPO) after six days of trading from NASDAQ.
After only one week after its NASDAQ debut on August 1, biotech company Vascular Biogenics has terminated its IPO. The decision came after key investors withdrew payment for shares they had promised to buy. The Israeli biotech firm is a clinical-stage pharmaceutical company focused on cancer and anti-inflammatory therapies.
Described as the “IPO that wasn’t” by The Wall Street Journal, the biotech firm traded 5.4 million shares at $12 each for six days before announcing that no shares would be issued.
According to a statement issued by the company, Vascular Biogenics' underwriters, Deutsche Bank and Wells Fargo Securities LLC, ended the IPO agreement “due to an unexpected situation in which a substantial existing U.S. shareholder did not fund payment for shares it previously agreed to purchase in the offering.”
CNBC reports that the situation is highly unusual because public trading continued after the settlement date, so regulators will likely need to reverse the trades. In further analysis, Bloomberg Businessweek reported that the company had not commercialized any products or generated any revenue in its 14 years. The company has accumulated a total deficit of $109.8 million as of December 2013.
More about Vascular Biogenics, Ipo, initial public offering, Stock exchange
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