Cancer Genetics, Inc. Increases Previously Announced Bought Deal to $3.0 Million
October 28 2020 - 9:55PM
Cancer Genetics, Inc. (Nasdaq: CGIX) (“Cancer Genetics”), a leader
in drug discovery and preclinical oncology and immuno-oncology
services, announced today that, due to demand, the underwriter has
agreed to increase the size of the previously announced public
offering and purchase on a firm commitment basis 1,363,637 shares
of common stock of the Company at a price to the public of $2.20
per share, less underwriting discounts and commissions. The
offering is expected to close on or about November 2, 2020, subject
to satisfaction of customary closing conditions.
H.C. Wainwright & Co. is acting as the
sole book-running manager for the offering.
The Company has also granted to the underwriter
a 30-day option to purchase up to an additional 204,545 shares of
common stock at the public offering price, less underwriting
discounts and commissions. The gross proceeds of the offering are
expected to be approximately $3.0 million, prior to deducting
underwriting discounts and commissions and offering expenses and
excluding the underwriter’s option to purchase additional shares.
Cancer Genetics intends to use the net proceeds to fund working
capital and other general corporate purposes.
A shelf registration statement on Form S-3
relating to the public offering of the shares of common stock
described above was filed with the Securities and Exchange
Commission (“SEC”) and was declared effective on July 21, 2020. A
preliminary prospectus supplement describing the terms of
the offering was filed with the SEC on October 28, 2020, and is
available on the SEC’s website located at http://www.sec.gov.
Electronic copies of the final prospectus supplement and the
accompanying prospectus relating to the offering may be obtained,
when available, from H.C. Wainwright & Co., LLC, 430
Park Avenue 3rd Floor, New York, NY 10022, or by calling (646)
975-6996 or by emailing placements@hcwco.com or at the SEC’s
website at http://www.sec.gov.
This press release shall not constitute an offer
to sell or the solicitation of an offer to buy, nor shall there be
any sale of these securities in any state or jurisdiction in which
such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state or jurisdiction. Any offer, if at all, will be made only by
means of the prospectus supplement and accompanying prospectus
forming a part of the effective registration statement.
About Cancer Genetics, Inc.
Through its vivoPharm subsidiary, Cancer
Genetics offers proprietary preclinical test systems supporting
drug discovery programs valued by the pharmaceutical industry,
biotechnology companies, and academic research centers. The Company
is focused on precision and translational medicine to drive drug
discovery toward novel and repurposed therapies. vivoPharm
specializes in conducting studies tailored to guide drug
development, starting from compound libraries and ending with a
comprehensive set of in vitro and in vivo data
and reports, which are needed for Investigational New Drug
filings. vivoPharm operates in the Association for Assessment
and Accreditation of Laboratory Animal Care International (AAALAC)
accredited and GLP compliant audited facilities. For more
information, please visit www.cancergenetics.com.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. All statements pertaining to Cancer Genetics,
Inc.’s expectations regarding future financial and/or operating
results, the proposed offering of Cancer Genetics, Inc.’s shares of
common stock, including as to the consummation of the public
offering described above and the use of net proceeds therefrom,
potential for our tests and services and future revenues or growth
in this press release constitute 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”) should also be considered to be forward-looking
statements. Forward-looking statements involve risks and
uncertainties, including, without limitation, risks inherent in our
ability to satisfy all closing conditions to the merger with
StemoniX, Inc., our attempts to adapt to the global coronavirus
pandemic, achieve profitability by increasing sales of our
pre-clinical services, maintain our existing customer base and
avoid cancellation of customer contracts or discontinuance of
trials, raise capital to meet our liquidity needs, market and other
conditions, properly evaluate strategic options, and other risks
discussed in the Cancer Genetics, Inc. Form 10-K for the year ended
December 31, 2019 and Form 10-Q for the quarter ended June 30,
2020, along with other filings with the Securities and Exchange
Commission. These forward-looking statements speak only as of the
date hereof. Cancer Genetics, Inc. disclaims any obligation to
update these forward-looking statements.
Investor Contacts:Jennifer K.
Zimmons. Ph.D. Investor Relations Zimmons International
Communications, Inc. Email: jzimmons@zimmonsic.com Phone:
+1.917.214.3514
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