NEW YORK (GenomeWeb) – CombiMatrix has filed a preliminary prospectus with the US Securities and Exchange Commission to offer a combination of preferred stock and warrants that it expects will bring in net proceeds of around $7.4 million.
The Irvine, California-based array-based molecular diagnostics firm intends to offer 8,400 units at $1,000 per unit. Each unit will consist of one share of Series F preferred stock and one warrant exercisable for 684.9315 shares of its common stock, which equals 50 percent of the number of shares of common stock issuable upon conversion of a share of Series F preferred stock at the initial conversion price.
The conversion price of the preferred stock has not yet been set, but the firm expects it to be 110 percent of the consolidated closing bid price of CombiMatrix's common stock on the Nasdaq on the date the firm enters into an underwriting agreement for the offering.
CombiMatrix's shares were trading at $.75 in late Wednesday morning trade, up around 2 percent from its Tuesday close.
The firm said that it plans to use net proceeds from the offering for working capital and general corporate purposes.
CombiMatrix said that 11,506,850 shares of common stock underlie the Series F preferred stock in the units. Following completion of the offering, CombiMatrix's common stock outstanding would increase around 90 percent to 24,187,777. However, the firm is seeking approval from its shareholders to effect a reverse stock split in a range of one-for-five to one-for-twenty. The shares outstanding listed in the prospectus do not take into account the potential effect of that reverse split.
Ladenburg Thalmann is the sole book-running manager on the offering, and Aegis Capital is serving as lead manager.