Skip to main content
Premium Trial:

Request an Annual Quote

CombiMatrix Raises $10M in Sale of Convertible Note

NEW YORK (GenomeWeb News) – CombiMatrix said today that it has sold a $10 million secured convertible note to YA Global Investments.
 
The note is due on the earlier of July 10, 2010, or within four months after CombiMatrix receives payment from National Union Fire Insurance Company in accordance with a $35.7 million judgment issued by the United States District Court for the Central District of California.
 
CombiMatrix said that after covering costs, the net proceeds from the sale of the note were approximately $9.8 million, which will be used for working capital needs including “expansion” of its molecular diagnostics business.
 
"Though we can never predict a final outcome or timing, we hope this capital will bridge us to collection” of the judgment against National Union, Amit Kumar, president and CEO of CombiMatrix, said in a statement.
 
The note bears annual interest of 10 percent and is convertible into common stock of CombiMatrix at any time at a conversion price of $11.87 per share, which is equivalent to 842,460 shares, the company said.
 
CombiMatrix shares were priced at $10.97 in mid-afternoon Friday trade.
 
The note is secured by the $35.7 million judgment “as well as other assets of the company,” CombiMatrix said.
 
In addition to the note, CombiMatrix issued a warrant to YA to purchase 168,492 shares of common stock at an exercise price of $11.87, and a warrant to purchase 168,492 shares of common stock at an exercise price of $13.65.
 
The term of both warrants is five years, and CombiMatrix has the right to call the warrants upon meeting certain trading conditions.
 
As a condition to the financing, all executive officers of CombiMatrix, including the CEO and board of directors, have signed “lock-up agreements” that prohibit selling of their current or future holdings until one-half of the principal amount of the note has been converted or redeemed.

The Scan

WHO Seeks Booster Pause

According to CNN, the World Health Organization is calling for a moratorium on administering SARS-CoV-2 vaccine boosters until more of the world has received initial doses.

For Those Long Legs

With its genome sequence and subsequent RNAi analyses, researchers have examined the genes that give long legs to daddy longlegs, New Scientist says.

September Plans

The New York Times reports that the US Food and Drug Administration is aiming for early September for full approval of the Pfizer-BioNTech SARS-CoV-2 vaccine.

Nucleic Acids Research Papers on Targeting DNA Damage Response, TSMiner, VarSAn

In Nucleic Acids Research this week: genetic changes affecting DNA damage response inhibitor response, "time-series miner" approach, and more.