Notably absent from the participating investor list was
KaloBios CEO Dave Pritchard, who clarified that the prior investment came not from Lehman Brothers, but from Lehman Healthcare Group, said that Lehman had committed to coming in pro rata for the scheduled close this month, but then withdrew as news of Lehman’s Chapter 11 bankruptcy emerged. He says that other participating investors filled the gap left by the exiting Lehman investor.
“It all happened so fast,” Pritchard says. “I don’t think they realized what was really happening until the very last minute.”
He adds that Lehman still holds its shares from the prior round. —Dan Primack