Cancer Genetics, Inc. Announces Closing of Public Offering of Common Stock
January 14 2019 - 5:29PM
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 closing and
funding of its previously announced underwritten public offering of
13,333,334 shares of its common stock ("Common Stock") at a public
offering price of $0.225 per share. The Company has also granted
the underwriter an option for 45 days to purchase an additional
2,000,000 shares, at a price to the public of $0.225 per share. The
Company’s Chairman, John Pappajohn; board director, Geoffrey Harris
and President and Chief Executive Officer, John A. Roberts, each
purchased shares in the offering. The gross proceeds from the
offering, before deducting the underwriting discounts and
commissions and estimated offering expenses are $3.0
million.
H.C. Wainwright & Co. acted as the sole
book-running manager for the offering.
Cancer Genetics intends to use the net proceeds
from this offering to pay lender fees and other costs incurred in
connection with the potential forbearance agreements Cancer
Genetics is negotiating with its banks, to pay certain costs
previously incurred in connection with its on-going strategic
initiatives, 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
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 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, 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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