Cancer Genetics, Inc. Announces Pricing of Public Offering of Common Stock
January 09 2019 - 11:20PM
Cancer Genetics, Inc. (Nasdaq: CGIX), a leader in enabling
precision medicine for immuno-oncology and genomic medicine through
molecular markers and diagnostics, today announced the pricing of
an underwritten public offering of 13,333,334 shares of its common
stock at a price to the public of $0.225 per share. Cancer Genetics
also granted the underwriter a 45-day option to purchase up to an
additional 2,000,000 shares of its common stock at the public
offering price of $0.225 per share, less underwriting discounts and
commissions. Cancer Genetics expects to receive aggregate gross
proceeds of approximately $3.0 million from the offering,
assuming no exercise of the underwriter’s option to purchase
additional shares. The offering is expected to close on or about
January 14, 2019, subject to customary closing conditions.
H.C. Wainwright & Co. is acting as the sole
book-running manager for the offering.
Cancer Genetics intends to use the net proceeds
from the offering to pay lender fees and other costs incurred in
connection with the potential forbearance agreements it is
negotiating with its banks, to pay certain costs previously
incurred by it in connection with its terminated transaction with
NovellusDx Ltd., and if any proceeds remain available, 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 June 5, 2017. A
preliminary prospectus supplement describing the terms of the
offering was filed with the SEC on January 9, 2019, and is
available on the SEC’s website located at http://www.sec.gov.
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.Cancer Genetics, Inc. is a leader in enabling
precision medicine in oncology through the use of biomarkers and
molecular testing. Cancer Genetics is developing a global footprint
with locations in the US and Australia. We have established strong
clinical research collaborations with major cancer centers such as
Memorial Sloan Kettering, The Cleveland Clinic, Mayo Clinic, Keck
School of Medicine at USC and the National Cancer Institute.
The Company offers a comprehensive range of
laboratory services that provide critical genomic and biomarker
information. Its state-of-the-art reference labs are CLIA-certified
and CAP-accredited in the US and have licensure from several
states, including New York State.
Forward-Looking StatementsThis
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 offering described above,
the size of the offering 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 with respect to our ability to
complete a strategic transaction, risks with respect to our need
and ability to obtain future capital to satisfy our obligations to
our lenders and creditors, risks inherent in the development and/or
commercialization of potential tests, risks of cancellation of
customer contracts or discontinuance of trials, risks that
anticipated benefits from consolidation efforts and/or acquisitions
will not be realized, uncertainty in the results of clinical trials
or regulatory approvals, uncertainties with respect to evaluating
strategic options, maintenance of intellectual property rights,
risks with respect to maintaining our listing on Nasdaq, and other
risks discussed in the Cancer Genetics, Inc. Form 10-K for the year
ended December 31, 2017 and Form 10-Q for the quarter ended
September 30, 2018, 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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