The initial public offering for companies does not always pay-off the first time around and sometimes subsequent IPOs are required. One Colorado firm is now attempting to raise $35 million through an IPO. It had attempted to raise $75 million in 2012, but those plans fell through when the firm could not locate buyers.
The firm is attempting to develop cancer and infectious disease treatments. The firm now has partnerships for purposes of drug development in place with a couple of companies across the country. These two companies also have a significant stake in the biotech business.
There are also venture capital firms that have invested in the company. This money is to be used to continue testing of drugs and for increasing the size of its manufacturing facility. Investors in the firm will need to be patient, however, as the company will likely not be profitable for a number of years. The firm has a deficit of $199.3 million and only has had one year where it did not report a net loss since it was founded in 1995.
As business ventures often bring along with them a level of risk, it's often difficult for these companies to raise the capital needed to make a go of it. Conventional business financing may not suffice. In those circumstances attorneys are often needed who can seek out investors that can provide the needed venture capital. Experienced business attorneys can approach investors with business plans that will comply with the investor's requirements. Attorneys can also close the deal to the satisfaction of all parties involved.
Source: Xconomy, "Colorado-based Globelmmune Gives IPO a Second Shot, Aims for $35M," Michael Davidson, March 17, 2014