Cancer Genetics Announces Closing of $10.0 Million Private Placement Priced At-the-Market
Summary
RUTHERFORD, N.J., Feb. 01, 2021 (GLOBE NEWSWIRE) -- Cancer Genetics, Inc. (the “Company”) (Nasdaq: CGIX), a leader in drug discovery and preclinical oncology and immuno-oncology services, today announced the closing of its previously announced private placement of approximately $10.0 million through the issuance of an aggregate 2,758,624 shares of its common stock and warrants to purchase up to an aggregate 2,758,624 shares of common stock, at a combined purchase price of $3.625 per share of common stock and associated warrant in a private placement priced at-the-market under Nasdaq rules. The net proceeds are also expected to be available to the combined company once the previously announced merger with StemoniX closes, which is subject to stockholder approval. Under an agreement with the investors, the Company is required to file an initial registration statement with the Securities and Exchange Commission covering the resale of the shares of common stock to be issued to the investors by 9:30 a.m., Eastern Time, on February 2, 2021 and to use its best efforts to have the registration statement declared effective as promptly as practical thereafter, and in any event no later than 90 days after today in the event of a “full review” by the Securities and Exchange Commission. Through its vivoPharm subsidiary, Cancer Genetics offers proprietary preclinical test systems supporting drug discovery programs valued by the pharmaceutical industry, biotechnology companies, and academic research centers. Forward-looking statements involve risks and uncertainties, including, without limitation, market and other conditions; our ability to satisfy all closing conditions to the merger with StemoniX, Inc., including financing conditions and Nasdaq listing requirements, our attempts to adapt to the global coronavirus pandemic, achieve profitability by increasing sales of our pre-clinical services, maintain our existing customer base and avoid cancellation of customer contracts or discontinuance of trials, raise capital to meet our liquidity needs, and market and other conditions, properly evaluate strategic options, and other risks discussed in the Cancer Genetics, Inc. Form 10-K for the year ended December 31, 2019 and Form 10-Q for the quarter ended September 30, 2020, along with other filings with the Securities and Exchange Commission.