NEW YORK – Oncocyte said Monday that it has entered a securities purchase agreement for a registered direct offering and concurrent private placement that is expected to raise $29.1 million in gross proceeds.
The offering is priced at $2.05 per share.
The agreement involves the sale of 3,609,755 shares of common stock in the registered direct offering and 7,536,708 shares of common stock and common stock equivalent pre-funded warrants to purchase 3,069,925 shares of common stock.
The Irvine, California-based company's five largest shareholders, including Bio-Rad Laboratories, led the investment round, along with two members of the company's management team.
Last year, the company raised approximately $10.2 million in a similar purchase agreement.
Oncocyte expects that the influx of funds, together with its current cash on hand, will be enough to fully fund the development of the company's in vitro diagnostic transplant assay program. Oncocyte sees clearance of this assay by the US Food and Drug Administration as key to achieving self-sustaining revenue.
Last month, Oncocyte received expanded coverage for its VitaGraft Kidney test for kidney transplant rejection from the US Centers for Medicare and Medicaid Services under the MolDx program. VitaGraft Kidney is a blood-based transplant monitoring test that uses Bio-Rad's Droplet Digital PCR to quantify the concentration of donor-derived cell-free DNA following kidney transplantation.
"We're going to make it easier for transplant doctors to manage their patients' care," Josh Riggs, Oncocyte's president and CEO, said in a statement. "Securing the necessary funding to complete our FDA IVD clearance program gets us closer to making that a reality."