Safeguard Scientifics sells additional 2.4 million shares of its position in Clarient

Safeguard Scientifics, Inc.Sep 23 2009

Safeguard Scientifics, Inc. (NYSE:SFE), a holding company that builds value in growth-stage life sciences and technology companies, today announced that it has sold an additional 2.4 million shares of its position in Clarient, Inc. (Nasdaq: CLRT) through a Clarient shelf registration on Form S-3 that was declared effective by the Securities and Exchange Commission on August 20, 2009. Underwriters for the offering – Stephens Inc., Robert W. Baird & Co., Stifel, Nicolaus & Company and Boenning & Scattergood – exercised an option to purchase the additional shares.

To date, Safeguard has sold approximately 18.4 million shares of Clarient common stock and now holds 28.1 million shares and 2.75 million warrants at various strike prices, with a combined market value of $131 million as of yesterday’s close. Proceeds from the exercise of the overallotment option were approximately $8 million, net of underwriter commissions, bringing the total from the offering to approximately $61 million. Safeguard now holds 28.5% of Clarient’s outstanding common stock on an as-converted basis.

“These transactions continue to transform and enhance Safeguard’s balance sheet,” said Peter J. Boni, President and CEO of Safeguard. “The $61 million infusion of cash from the sale of our Clarient shares improves our debt to equity ratio from 1:1 from the beginning of the year to 1:3 today. Balance sheet strength and prudent use of cash remain Safeguard’s top priorities for 2009. Our goal is to pay or repurchase our convertible debt obligations on or before the Q1 2011 put date of such converts. As a result of this latest transaction, Safeguard has more than $130 million of cash, excluding cash held in escrow, to support exiting portfolio companies and invest in new, exciting, high-potential growth life sciences and technology companies.”