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Nanosphere Closes $4.4M Financing Round, $30M Debt Facility

NEW YORK (GenomeWeb) – Nanosphere has closed its direct offering of $4.4 million Series A convertible preferred stock and has secured a $30 million debt facility with NSPH Funding, an affiliate of Life Sciences Alternative Funding and SWK Funding.

The firm had announced earlier this week, in conjunction with its first quarter results, that it had commenced the preferred stock offering. Nanosphere issued 1,168,659 shares of common stock at a conversion price of $3.765 per share and warrants to purchase an equal amount of shares of common stock. The warrants have an exercise price of $3.65 per share and are exercisable for five years, commencing six months after the closing date of the offering. 

Nanosphere also issued warrants to purchase 70,120 shares at an exercise price of $4.45 per share to H.C. Wainwright, which acted as exclusive placement agent.

The firm said net proceeds from the offering were approximately $4.0 million, which it intends to use for general corporate purposes and working capital.

Nanosphere also said it immediately drew down $20 million of the new $30 million debt facility. At the same time, the firm closed its existing debt facility with Silicon Valley Bank and Oxford Finance, repaying approximately $8.9 million. Nanosphere said it intends to use the remaining proceeds for general corporate purposes and working capital, including development of its next-generation Verigene pathogen detection platform.

As of March 31, Nanosphere held $14.2 million in cash and cash equivalents.