Cancer Genetics Announces $5 Million Registered Direct Offering
May 20 2016 - 9:00AM
Cancer Genetics, Inc. (Nasdaq:CGIX) ("Cancer Genetics" or the
"Company"), an emerging leader in DNA-based cancer diagnostics,
today announced that it has entered into definitive agreements with
healthcare focused institutional investors for an offering of 2.5
million shares of common stock with gross proceeds of approximately
$5 million in a registered direct offering.
Concurrently in a private placement, for each
share of common stock purchased by an investor, such investor will
receive from the Company an unregistered warrant to purchase
one-half of a share of common stock. The warrants have an
exercise price of $2.25 per share, will be exercisable six months
from the date of issuance, and will expire five years from the
initial exercise date. The closing of the offering is
expected to take place on or about May 25, 2016, subject to the
satisfaction of customary closing conditions.
The Company’s Chairman purchased $700,000 of the
securities at market price, $2.2025 per combination of shares and
warrants.
Rodman & Renshaw, a unit of H.C. Wainwright
& Co., LLC, acted as the exclusive placement agent in
connection with this offering.
Net proceeds from the offering are expected to
be approximately $4,500,000. Cancer Genetics intends to use the net
proceeds from the offering for general corporate purposes.
The shares of common stock described above (but
not the warrants or the shares of common stock underlying the
warrants) are being offered pursuant to a shelf registration
statement (File No. 333-196374). Such shares of common stock
may be offered only by means of a prospectus, including a
prospectus supplement, forming a part of the effective registration
statement.
The warrants and the shares of common stock
underlying the warrants to be issued in the offering have not been
registered under the Securities Act of 1933, as amended, or
applicable state securities laws. Accordingly, the warrants and
underlying shares of common stock underlying the warrants may not
be offered or sold in the United States except pursuant to an
effective registration statement or an applicable exemption from
the registration requirements of the Securities Act and such
applicable state securities laws.
This press release shall not constitute an offer
to sell or the solicitation of an offer to buy any of the
securities described herein. There shall not be any offer,
solicitation of an offer to buy, or sale of securities in any state
or jurisdiction in which such an offering, solicitation, or sale
would be unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction. The Company will
file a prospectus supplement with the SEC relating to such shares
of common stock, and following such filing, copies of the
prospectus supplement and the accompanying base prospectus relating
to this offering may be obtained at the SEC's website at
http://www.sec.gov, or from H.C. Wainwright & Co. by e-mailing
placements@hcwco.com. The warrants and the shares of common stock
underlying the warrants issued in the offering have not been
registered under the Securities Act of 1933, as amended or
applicable state securities laws. Accordingly, the warrants and
underlying shares of common stock may not be offered or sold in the
United States except pursuant to an effective registration
statement or an applicable exemption from the registration
requirements of the Securities Act and such applicable state
securities laws.
About Cancer Genetics:Cancer
Genetics Inc. is an emerging leader in DNA-based cancer
diagnostics, servicing some of the most prestigious medical
institutions in the world. Our tests target cancers that are
difficult to diagnose and predict treatment outcomes. These cancers
include hematological, urogenital and HPV-associated cancers. We
also offer a comprehensive range of non-proprietary
oncology-focused tests and laboratory services that provide
critical genomic information to healthcare professionals, as well
as biopharma and biotech companies. Our state-of-the-art reference
labs are focused entirely on maintaining clinical excellence and
are both CLIA certified and CAP accredited and have licensure from
several states including New York State. We have established strong
research collaborations with major cancer centers such as Memorial
Sloan-Kettering, The Cleveland Clinic, Mayo Clinic and the National
Cancer Institute.
For more information, please visit or follow us:Internet:
www.cancergenetics.comTwitter:
@Cancer_GeneticsFacebook: www.facebook.com/CancerGenetics
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 the
completion, timing, pricing and size of the offering described 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 the
development and/or commercialization of potential products, risks
of cancellation of customer contracts or discontinuance of trials,
risks that anticipated benefits from acquisitions will not be
realized, uncertainty in the results of clinical trials or
regulatory approvals, need and ability to obtain future capital,
maintenance of intellectual property rights and other risks
discussed in the Cancer Genetics, Inc. Form 10-K for the year ended
December 31, 2015 and the Form 10-Q for the Quarter ended March 31,
2016 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.
Contact:
Panna Sharma
CEO & President
Cancer Genetics, Inc.
201-528-9200
panna.sharma@cgix.com
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