Skip to main content
Premium Trial:

Request an Annual Quote

Cancer Genetics Files for $15M Stock Offering

NEW YORK (GenomeWeb News) – Cancer Genetics has filed a preliminary prospectus to offer $15 million in a public offering of its stock.

In a Form S-1 filed with the US Securities and Exchange Commission on Wednesday, the Rutherford, NJ-based cancer diagnostics firm said that it anticipates net proceeds of $13.5 million from the offering. It has not priced the shares or said how many shares it plans to offer.

Aegis Capital is the underwriter on the offering, and CGI has granted the financial services firm a 45-day option to purchase up to a little more than $2.2 million of CGI's stock to cover any over-allotments. Net proceeds would increase to $15.6 million if Aegis exercises its over-allotment option in full.

CGI went public in April, raising about $5.0 million in net proceeds. It currently lists its shares on the OTC Bulletin Board under ticker symbol "CGIX" but has applied to list on the Nasdaq Capital Market.

In its SEC document, the company said that it intends to use about $3.5 million of net proceeds from the offering to repay certain loans, and $1.0 million to fund its joint venture with the Mayo Clinic. The two partners launched OncoSpire Genomics a few weeks ago to develop and commercialize cancer diagnostic tests, and CGI said it would invest at least $2 million and up to $6 million into the JV.

It also said in its SEC document that it will direct $5.0 million of net proceeds to hire additional sales and marketing staff and use $2.0 million to fund R&D and potential regulatory submission activities. Remaining proceeds will go toward general corporate purposes, ongoing operations, and business expansion.

The company last month reported first-quarter revenues jumped 45 percent year over year.

The Scan

Gone, But Now Reconstructed SARS-CoV-2 Genomes

In a preprint, a researcher describes his recovery of viral sequences that had been removed from a common database.

Rare Heart Inflammation Warning

The Food and Drug Administration is adding a warning about links between a rare inflammatory heart condition and two SARS-CoV-2 vaccines, Reuters reports.

Sandwich Sampling

The New York Times sent tuna sandwiches for PCR analysis.

Nature Papers Describe Gut Viruses, New Format for Storing Quantitative Genomic Data, More

In Nature this week: catalog of DNA viruses of the human gut microbiome, new dense depth data dump format to store quantitative genomic data, and more.