MDRNA Shares Rise On Debt Repayment

NEW YORK (AP) — Shares of RNAi drug developer MDRNA Inc. jumped Tuesday after the company said it repaid all of its remaining debt to General Electric Capital Corp.

The stock gained 20 cents, or 12.3 percent, to reach $1.83 in morning trading. Shares have traded between 14 cents and $3.55 over the last 52 weeks.

The repayment on the $5.5 million loan was for a loan and security deal in January. The repayment removes all liens on intellectual property, equipment and other assets. That gives the company more flexibility in establishing partnerships.

"By eliminating the remaining debt, we have significantly strengthened our balance sheet, enabling us to further capitalize on our strong science and broad intellectual property estate," said President and CEO J. Michael French in a statement.

The company develops RNAi-based drugs, or treatments based on gene-silencing technology. The goal of the technology is to find the gene at the root of a disease or condition and target it specifically, turning it off and shutting down the root of the ailment.

The repayment follows the Bothell, Wash.-based company's move to close a $10.5 million offering of common stock and warrants. That offering consisted of 5.25 million shares at $2 each and warrants to buy 5.25 million shares.

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