NEW YORK (GenomeWeb News) – CombiMatrix yesterday registered with the US Securities and Exchange Commission to sell up to 2,305,274 shares upon the exercise of outstanding warrants.
The company said in its SEC filing that if all of the warrants are exercised, it will net up to $19,510,926 before deducting around $17,500 in expenses.
CombiMatrix said it intends to use the proceeds for working capital, research and development, general and administrative expenses, and sales and marketing activities.
The outstanding warrants described in the filing include warrants to purchase 159,648 shares for $24.00 per share, issued September 2005; warrants to purchase 1,129,894 and 48,842 shares for $8.70 and $10.88 per share, respectively, issued December 2006; and warrants to purchase 966,890 shares for $5.50 per share, issued May 2007.
In mid-morning trading on the Nasdaq today, the company’s shares were down .1 percent at $10.03.
The filing follows the company’s disclosure last week that it had $5.5 million in cash as of March 31 and that it would need to secure additional financing in order to continue operating as a going concern beyond September.
CombiMatrix said in a statement last week that it needs to “obtain capital from external sources, increase revenues and reduce operating costs” and that it is also “evaluating a number of opportunities to increase our cash reserves.”
The company is awaiting a final judgment in a lawsuit that it won in February against National Union Fire Ins. Co. of Pittsburgh. The court overseeing the case recently awarded CombiMatrix attorneys’ fees and litigation costs related to the suit, bringing the total amount owed to the firm to $35.7 million.