Chembio Diagnostics Announces Pricing of Public Offering of Common Stock
May 07 2020 - 8:55AM
Chembio Diagnostics, Inc. (Nasdaq: CEMI) (“Chembio”), a
leading point-of-care diagnostic company focused on infectious
diseases, announced today the pricing of its previously announced
public offering of 2,338,468 shares of its common stock at a public
offering price of $11.75 per share for gross proceeds of
approximately $27.5 million. In addition, Chembio has granted the
underwriters a 30-day option to purchase up to an additional
350,770 shares of common stock at the public offering price less
the underwriting discounts and commissions. All shares of common
stock to be sold in the offering will be offered by Chembio. The
offering is expected to close on or about May 11, 2020, subject to
the satisfaction of customary closing conditions.
Chembio intends to use the net proceeds from the
offering to support the refocus of its business strategy, including
the manufacturing and further commercialization of the DPP COVID‑19
System, to expand its sales force to support growth, to increase
its manufacturing capacity and for other general corporate
purposes.
Baird is acting as sole book‑running manager for
the proposed offering. Dougherty & Company LLC is acting as
co-manager for the proposed offering.
The offering is being made pursuant to an
effective shelf registration statement on Form S-3
(No. 333‑227398) previously filed with the U.S. Securities and
Exchange Commission (the “SEC”) and a preliminary prospectus
supplement and accompanying prospectus filed with the SEC on May 6,
2020, which are available on the SEC’s website located at
www.sec.gov. The final terms of the proposed offering will be
disclosed in a final prospectus supplement to be filed with the
SEC. Copies of the final prospectus supplement and accompanying
prospectus may also be obtained by contacting Robert W. Baird &
Co. Incorporated, Attention: Syndicate Department, 777 E. Wisconsin
Avenue, Milwaukee, WI 53202, by telephone at (800) 792-2473 or by
email at syndicate@rwbaird.com.
This press release does not constitute an offer
to sell or a solicitation of an offer to buy the securities
described herein, nor shall there be any sale of these securities
in any jurisdiction in which such offer, solicitation or sale would
be unlawful prior to the registration or qualification under the
securities laws of any such jurisdiction.
About Chembio
DiagnosticsChembio is a leading point-of-care diagnostics
company focused on detecting and diagnosing infectious diseases
including COVID-19, sexually transmitted disease and fever and
tropical disease. Chembio’s patented DPP technology platform, which
uses a small drop of blood from the fingertip, provides
high-quality, cost-effective results in approximately 15 minutes.
Coupled with Chembio’s extensive scientific expertise, its novel
DPP technology offers broad market applications beyond infectious
disease. Chembio’s products are sold globally, directly and through
distributors, to hospitals and clinics, physician offices, clinical
laboratories, public health organizations, government agencies, and
consumers. Learn more at www.chembio.com.
DPP is Chembio’s registered trademark. For
convenience, this trademark appears in this release without ®
symbols, but that practice does not mean that Chembio will not
assert, to the fullest extent under applicable law, its rights to
its trademark.
Forward-Looking Statements
This press release contains statements
concerning, among other matters, the terms and timing of, and the
anticipated use of net proceeds from, the proposed offering, that
constitute “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. Such statements
reflect management’s current views based on certain assumptions,
and they involve risks and uncertainties. Actual results, events or
performance may differ materially from the forward-looking
statements due to a number of important factors, and will be
dependent upon a variety of factors, including risks described in
public reports filed by Chembio with the SEC, including under the
caption “Risk Factors” in Chembio’s Annual Report on Form 10‑K for
the fiscal year ended December 31, 2019, as amended, and Chembio’s
Quarterly Report on Form 10-Q for the quarter ended March 31, 2020.
Chembio undertakes no obligation to update any forward-looking
statements contained in this press release as a result of new
information, future events or otherwise.
Contact:Philip TaylorGilmartin Group(415)
937-5406investor@chembio.com
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