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OncoCyte Eyes $3.6M Raise in Securities Offering

NEW YORK (GenomeWeb) – OncoCyte announced today it has reached definitive agreements with certain investors for the purchase of units to raise approximately $3.6 million in gross proceeds.

The investors include members of OncoCyte's management and its board, as well as new institutional investors, the company said. Net proceeds from the offering will be used for working capital, including further development of the company's confirmatory lung cancer diagnostic test called DetermaVu, and other general corporate purposes.

Each unit being offered will consist of one share of OncoCyte's common stock and one warrant to acquire one share of its common stock. The units are being offered at an at-market purchase price per unit of $2.86 per share.

The warrants have an exercise price of $3 per share of common stock and will become exercisable six months after the date of issue. They will expire five years after the date they become exercisable.

OncoCyte is currently developing the DetermaVu test, which was originally slated for launch in late 2017. After finding "inconsistent analytic results" during the final clinical validation of the assay, OncoCyte delayed the launch to late 2018. This led to additional platform comparison work, during which it uncovered new predictive markers, including some that appeared to have stronger associations than those in the firm's original algorithm.

The company extended its timeline to allow a "confirmation study" of DetermaVu with the addition of the new markers. In May, OncoCyte President and CEO William Annett said the firm had completed initial testing of a planned 160 samples in the confirmation study.

OncoCyte's shares were unchanged on the New York Stock Exchange this morning at $2.85.