NEW YORK (GenomeWeb News) — Vermillion, formerly known as Ciphergen Biosystems, today said it plans to gross around $20.5 million in a private stock placement to a group of existing and new investors.
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Vermillion said it plans to use the net proceeds from the transaction for general working capital needs.
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The investment, expected to close around Aug. 29, would come three months after Vermillion, then still known as Ciphergen, said in a US Securities and Exchange Commission filing that its current cash balances “may not be sufficient to fund planned expenditures."
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"This raises substantial doubt about our ability to continue as a going concern," the company said at the time.Â
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Under the terms of the private placement announced today, Vermillion will sell approximately 24.4 million shares of its common stock and issue warrants for around 19.5 million additional shares with an exercise price of $0.925 per share, the company said.
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Earlier this week, the company changed its name to Vermillion and said it expects to begin trading on the Nasdaq exchange Aug. 27 under the ticker symbol VRML.