[Clips] VeriChip Narrows IPO Price

[R.A. Hettinga]

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  Date: Fri, 9 Feb 2007 14:18:13 -0500
  To: Philodox Clips List <clips at philodox.com>
  From: "R.A. Hettinga" <rah at shipwright.com>
  Subject: [Clips] VeriChip Narrows IPO Price
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  <http://www.forbes.com/feeds/ap/2007/02/09/ap3412872.html?partner=alerts>

  Forbes


  Associated Press

  VeriChip Narrows IPO Price

  Associated Press 02.09.07, 11:17 AM ET



  Underwriters for VeriChip Corp., which makes microchips that implant under
  the skin, on Friday narrowed the expected share price for the company's
  pending initial public offering to $6.50 from a range of $6.50 to $8.50.

  VeriChip, which is based in Delray Beach, Fla., creates microchips
  implantable in humans to both locate them and provide medical information.
  The company is a spinoff of Applied Digital Solutions Inc., a technology
  company that focuses on security systems.

  The underwriters also cut the size of VeriChip's IPO to 3.1 million shares
  from 4.3 million shares, according to an amended filing with the Securities
  and Exchange Commission.

  The company said it plans to list its common stock on the Nasdaq Global
  Market under the symbol "CHIP."

  VeriChip originally filed its IPO in December 2005, and planned to sell up
  to $45.8 million in common stock.

  The company said it intends to use $3.5 million of the net proceeds from
  the IPO to repay a portion of its outstanding debt to Applied Digital. It
  also expects that $8 million to $10 million of the proceeds will be used
  over the next 24 months to continue the development of its VeriMed system,
  principally through an increase in sales and marketing efforts.

  The remaining net proceeds will be used for working capital and general
  corporate purposes, which may include research and development, capital
  expenditures and other sales and marketing expenses, the filing said.

  Merriman Curhan Ford & Co., C.E. Unterberg Towbin and Kaufman Bros. LP were
  listed as the underwriters for the offering.

  Applied Digital, which currently holds a controlling interest in VeriChip
  stock, has also granted the underwriters an option to purchase up to an
  additional 465,000 shares to meet demand, Friday's SEC filing said.

  For the nine months ended Sept. 30, 2006, VeriChip reported a net loss of
  $3.5 million, widening from a loss of $2.7 million in the 2005 comparable
  period.

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  R. A. Hettinga <mailto: rah at ibuc.com>
  The Internet Bearer Underwriting Corporation <http://www.ibuc.com/>
  44 Farquhar Street, Boston, MA 02131 USA
  "... however it may deserve respect for its usefulness and antiquity,
  [predicting the end of the world] has not been found agreeable to
  experience." -- Edward Gibbon, 'Decline and Fall of the Roman Empire'
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-- 
-----------------
R. A. Hettinga <mailto: rah at ibuc.com>
The Internet Bearer Underwriting Corporation <http://www.ibuc.com/>
44 Farquhar Street, Boston, MA 02131 USA
"... however it may deserve respect for its usefulness and antiquity,
[predicting the end of the world] has not been found agreeable to
experience." -- Edward Gibbon, 'Decline and Fall of the Roman Empire'