Cyanotech Stock Offering Success

Hawaii-based biotechnology company Cyanotech's first public offering, 1.5 million shares to raise $10 million for expansion and product development, has been well received. Almost 990,000 shares were traded on the first trading day, in a range of $6.88 to $7.50, but closing at $7.06.

The company intends to build more ponds in which to grow spirulina, a food supplement rich in natural beta carotene, proteins and other nutrients which are used by health-food enthusiasts. It will also use some of the proceeds to produce a red pigment called astaxanthin, which is added to salmon feed to give the fish's flesh a pink color, and provide working capital.