OncoCyte Receives $5.74 Million in Proceeds from Exercise of Warrants
July 25 2017 - 7:00AM
OncoCyte Corporation (NYSE MKT:OCX), a developer of novel,
non-invasive tests for the early detection of cancer, today
announced the receipt of $5.74 million through the cash exercise of
1,766,923 common stock purchase warrants. Each warrant was
exercised to purchase one share of common stock for $3.25 per
share. The warrants were issued as part of a $10.5 million
financing completed in August 2016 and would have otherwise been
exercisable until August 2021.
The exercise transactions were negotiated with
certain warrant holders as a means of raising additional near-term
working capital. In consideration for the exercise of the warrants,
two warrant holders received new warrants to purchase the same
number of shares purchased on exercise of the prior warrant, with
an exercise price of $5.50 per share; another warrant holder
received a new warrant to purchase the 50% of the number of shares
purchased on exercise of the prior warrant, with an exercise price
of $3.25 per share. The three warrants have a five-year term from
the date of issuance.
A fourth warrant holder received (i) a new warrant
to purchase 50% of the number of shares purchased on exercise of
the prior warrant with an exercise price of $5.50 per share and
(ii) a second new warrant to purchase 50% of the number of shares
purchased on exercise of the prior warrant with an exercise price
of $3.25 per share. These two warrants each have a two-year term
from the date of issuance.
Following the exercise of the warrants, there were
31,313,200 shares of common stock outstanding and warrants to
purchase an aggregate of 2,779,221 shares of common stock
outstanding, including the warrants issued during August 2016 and
February 2017 and the new warrants, with exercise prices ranging
from $3.25 to $5.50. The proceeds from the warrant exercises
strengthen OncoCyte’s balance sheet and will be used for general
working capital purposes.
“The exercise of warrants by some of our largest
shareholders provides additional working capital to advance the
development of our novel liquid biopsy diagnostics for lung and
breast cancer and prepare for the launch of our lung cancer
diagnostic in the second half of 2017,” stated William Annett,
President and CEO. “We appreciate the continued confidence in
OncoCyte demonstrated by these warrant exercises and look forward
to the achievement of additional significant milestones in
2017.”
About OncoCyte Corporation
OncoCyte is focused on the development and
commercialization of novel, non-invasive blood and urine (“liquid
biopsy”) diagnostic tests for the early detection of cancer to
improve health outcomes through earlier diagnoses, to reduce the
cost of care through the avoidance of more costly diagnostic
procedures, including invasive biopsy and cystoscopic procedures,
and to improve the quality of life for cancer patients. While
current biopsy tests use invasive surgical procedures to provide
tissue samples in order to determine if a tumor is benign or
malignant, OncoCyte is developing a next generation of diagnostic
tests that will be based on liquid biopsies using blood or urine
samples. OncoCyte’s pipeline products are intended to be
confirmatory diagnostics for detecting lung, breast and bladder
cancer. OncoCyte’s diagnostic tests are being developed using
proprietary sets of genetic and protein markers that differentially
express in specific types of cancer.
Forward Looking Statements
Any statements that are not historical fact
(including, but not limited to statements that contain words such
as “will,” “believes,” “plans,” “anticipates,” “expects,”
“estimates” and similar expressions) are forward-looking
statements. These statements include those pertaining to the
implementation and results of our future financial and/or operating
results, future growth in research, technology, clinical
development, and potential opportunities for OncoCyte, along with
other statements about the future expectations, beliefs, goals,
plans, or prospects expressed by management. Forward-looking
statements involve risks and uncertainties, including, without
limitation, risks inherent in the development and/or
commercialization of potential diagnostic tests or products,
uncertainty in the results of clinical trials or regulatory
approvals, the need and ability to obtain future capital, and
maintenance of intellectual property rights, and the need to obtain
third party reimbursement for patient’s use of any diagnostic tests
we commercialize. Actual results may differ materially from the
results anticipated in these forward-looking statements and as such
should be evaluated together with the many uncertainties that
affect the business of OncoCyte, particularly those mentioned in
the “Risk Factors” and other cautionary statements found in
OncoCyte’s Securities and Exchange Commission filings. OncoCyte
disclaims any intent or obligation to update these forward-looking
statements, except as required by law.
Investor Contact:
EVC Group, Inc.
Doug Sherk / Matt Haines
646-445-4800 / 917-733-9297
dsherk@evcgroup.com / mhaines@evcgroup.com
Financial Media Contact:
GIBSON Communications, LLC
Tom Gibson
201-476-0322
tom@tomgibsoncommunications.com