Cancer Genetics Closes $2.625 million Convertible Note Financing
July 18 2018 - 4:05PM
Cancer Genetics, Inc. (Nasdaq:CGIX), a leader in enabling precision
medicine for oncology through molecular markers and diagnostics,
today announced the closing of a $2.625 million convertible note
financing with a single institutional investor.
John A. Roberts, Chief Executive Officer of Cancer Genetics,
commented, “This capital raise helps the Company continue to
execute on our strategy of consolidating operations and expanding
our biopharma business. We plan to utilize this capital to assist
with funding our 2018 transformation and strategic plan to
streamline our business and execute against a path to profitability
with an emphasis on becoming a leader in oncology-focused testing,
genomic services and biomarker insight capabilities.”
The Note is convertible at any time at a fixed price of $0.80
per share and accrues interest at the rate of 10% per annum.
The Note matures in eighteen months, and the holder has certain
redemption rights beginning six months after closing. There was no
placement agent in connection with the financing.
As announced previously, the Company has engaged Raymond James
& Associates, Inc. as a financial advisor. Raymond James, along
with Cancer Genetics, is in discussions with multiple parties to
execute on options for the Company’s strategic direction. These
discussions may include raising additional capital, acquiring
complementary assets or companies, the sale of the Company and
other strategic transactions or partnerships.
For more information, please visit or follow CGI
at:
Internet: www.cancergenetics.com
Twitter: @Cancer_Genetics
Facebook: www.facebook.com/CancerGenetics
Forward Looking Statements:
This press release may contain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. All statements pertaining to possible future
transactions, future financial and/or operating results,
future growth in revenues, margins, research, technology, clinical
development and potential opportunities for Cancer Genetics, Inc.
tests and services, along with other statements about the future
expectations, beliefs, goals, plans, or prospects expressed by
management 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
attempt to negotiate third party agreements, development and/or
commercialization of potential products, risks of cancellation of
customer contracts or bookings 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, uncertainty of collections from
Medicare and third party payors for novel tests and services and
other risks discussed in the Cancer Genetics, Inc. Form 10-K for
the year ended December 31, 2017 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:Lee Roth / Carol Ruth The
Ruth GroupTel: 646-536-7012 / 7004Email: lroth@theruthgroup.com /
cruth@theruthgroup.com
Media Contact:Kirsten ThomasThe Ruth GroupTel:
508-280-6592Email: kthomas@theruthgroup.com
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