NEW YORK – Oncocyte said Monday that it has entered into an at-the-market sales agreement to sell up to an aggregate of $50 million of shares of its common stock with investment bank BTIG as its sales agent and/or principal.
Under the agreement, Oncocyte will set the parameters for the sale of its shares, including the number of shares to be issued, the time period for sales requests, limitations on the number of shares that may be sold per day, and any minimum price below which sales may not be made, according to a document filed with the US Securities and Exchange Commission.
All such transactions must be an "at-the-market offering" as defined under the Securities Act of 1933. Oncocyte will pay BTIG a commission equal to 3 percent of the gross proceeds of any shares sold.
In an associated prospectus filed with the SEC, Irvine, California-based Oncycyte said it intends to use any net proceeds to further the commercialization of its DetermaRx assay and to complete development of DetermaIO and other future tests in its pipeline, including DetermaCNI, DetermaTx, and DetermaMx.
The firm could also use net proceeds to pay obligations under its merger agreements with Chronix Biomedical and Insight Genetics. Although it currently has no binding agreements with respect to additional acquisitions, Oncocyte wrote that monies raised could also fund investments in additional businesses or technologies.