--Seed developer sells subordinated notes that will convert to
stock in its IPO
--Purchasers will receive a 20% discount from the IPO price
--Artal Luxembourg SA purchased the largest portion of the
notes
By Christopher Zinsli
Of DOW JONES VENTUREWIRE
Ceres Inc. sold $11.4 million in convertible subordinated notes
to existing shareholders ahead of the agricultural-biotechnology
company's planned initial public offering, according to its latest
prospectus.
The notes will convert to common stock when the seed developer
completes an IPO of at least $40 million, and will give the
purchasers a 20% discount from the offering price.
Artal Luxembourg SA purchased the largest portion of the notes,
or $5 million worth. Other purchasers included Ambergate Trust,
Gimv NV (GIMB.BT), Hambrecht & Quist Capital Management and
Warburg Pincus LLC.
Other shareholders in the company include Monsanto Co. (MON),
Oppenheimer Funds Inc., Oxford Bioscience Partners and Soros
Private Equity Partners.
Ceres, based in Thousand Oaks, Calif., sells seeds to produce
renewable biomass feedstocks. The company is in the early stages of
commercialization and hasn't achieved profitability.
In May, the company filed plans to list on the Nasdaq Global
Market under the symbol CERE. Goldman Sachs & Co. and Barclays
Capital are leading the offering.
(This story was also published in Dow Jones VentureWire, a daily
publication that covers news about start-ups and venture
capital.)
-By Christopher Zinsli, Dow Jones VentureWire; 212-416-2034;
christopher.zinsli@dowjones.com