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The following is an excerpt from a S-1 SEC Filing, filed by ARENA PHARMACEUTICALS INC on 4/28/2000.
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ARENA PHARMACEUTICALS INC - S-1 - 20000428 - PROCEED_USE

USE OF PROCEEDS

The net proceeds to us from the sale of the shares of our common stock in this offering are estimated to be approximately $ million, or $ million if the underwriters' over-allotment option is exercised in full. These estimates are based upon an assumed initial public offering price of $ per share after deducting underwriting discounts and commissions and estimated offering expenses payable by us.

We intend to use the net proceeds from this offering for general corporate purposes, including working capital, research and development and clinical testing. The amounts and timing of our actual expenditures for each purpose may vary significantly depending upon numerous factors. In addition, we may use a portion of the net proceeds to acquire complementary businesses or technologies. We are not currently engaged in negotiations to make any acquisitions.

The principal purposes of this offering are to increase our capitalization and financial flexibility, to provide a public market for our common stock and to facilitate access to the public equity markets. As of the date of this offering, we cannot specify with certainty all of the particular uses for the net proceeds of this offering. Accordingly, we will retain broad discretion in the allocation of the net proceeds of this offering. Pending the use of the net proceeds as described above, we intend to invest the net proceeds of this offering in short-term, investment-grade, interest-bearing securities.

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