NEW YORK – Oncocyte said on Monday that it has priced an at-the-market stock offering of approximately 45.6 million shares.
The Irvine, California-based firm will sell the shares to board members at a price of $.36 per share and to other investors at $.31 per share and expects gross proceeds of $13.9 million before deducting offering expenses. The offering is expected to close on April 5. Oncocyte said it plans to use the proceeds to promote development and commercialization of its VitaGraft, DetermaIO, and DetermaCNI tests. It also plans to use approximately $3.7 million to repay a portion of its Series A convertible preferred stock to reduce future interest expense.
The news comes as the firm reported preliminary fourth quarter and full-year 2022 financial results. Oncocyte is seeking an additional 15 days to complete its annual Form 10-K submission to the US Securities and Exchange Commission.
For the three months ended Dec. 31, Oncocyte reported preliminary revenues of approximately $1.1 million, down 69 percent from the prior-year period and below the consensus Wall Street estimate of $1.4 million.
Full-year 2022 revenues were $5.6 million, down 27 percent from the prior year. Net loss for the year was $72.9 million, or $.66 per share, compared to a net loss of $64.1 million, or $.72 per share, in 2021. R&D expenses in 2022 were $7.3 million, up from $5.0 million, while SG&A expenses totaled $22.9 million, up from $22.7 million the year before.
"We have committed to a strategic shift from a service lab model to a product-driven revenue model with low-cost infrastructure and scalable high-margin distributable content," new Oncocyte CEO Joshua Riggs, appointed in late February, said in a statement. "With a reduced cash burn, we believe this puts us in a better position to support the future of our core products and rapidly deliver on our major milestones ahead. We are confident that a kitted product approach puts our unique technology in the hands of researchers at every level, from pharma to academia, encouraging research on the role of the tumor microenvironment in oncology and transplant graft health and viability."
Oncocyte laid off 40 percent of its workforce in December and is selling its DetermaRx lung cancer prognostic test.
The company ended the year with $20.0 million in cash and cash equivalents, $1.7 million in restricted cash, and $433,000 in marketable securities.
In Monday morning trading on the Nasdaq, shares of Oncocyte were down 10 percent to $.32.