(Update: Trading in NUCRYST Pharmaceuticals shares began at about 12 p.m on the Nasdaq. The symbol was changed from NCST to NCSTV.)

Dec. 22, 2005 — NUCRYST Pharmaceuticals Corp., a Wakefield, Mass., maker of medical products that fight infection and inflammation based on nanocrystalline silver technology, announced an initial public offering of 4.5 million common shares at a price of $10 per share.

The company said its common shares are slated to trade on the Nasdaq National Market under the symbol NCST and on the Toronto Stock Exchange (in Canadian dollars) under the trading symbol NCS. It did not say when public trading on either exchange was expected to begin.

The shares are being offered by an underwriting syndicate led by Jefferies & Company Inc. and co-managed by Adams Harkness Inc., GMP Securities L.P., and SunTrust Robinson Humphrey.

NUCRYST has granted the underwriters a 30-day option to purchase up to 675,000 additional shares to cover over-allotments, if any.

Net proceeds from the offering are expected to be approximately $39.9 million (or $46.1 million if the underwriters exercise the over-allotment) after deducting underwriting discounts and commissions and estimated offering expenses.

The company said it plans to use approximately $35 million of the net proceeds for capital expenditures, research and development and other general corporate purposes.

It will use the remaining proceeds of $4.9 million to $11.1 million to repay part of a $46.5 million debt to The Westaim Corp., NUCRYST’s parent company.

Westaim has agreed to allow NUCRYST to pay off the additional debt remaining after the cash payment with NUCRYST shares. After the offering, Westaim will continue to own a majority equity position in NUCRYST.

– David Forman