NEW YORK – Oncocyte said on Wednesday that it has reached definitive agreements with its two largest institutional investors, Pura Vida Investments and Broadwood Partners, to purchase $25 million of the company's common shares in a registered offering.
The firm anticipates selling 7,301,402 shares of its common stock at a price of $3.42 per share, the average of the stock's last five closing prices.
Pura Vida, as the lead investor, is acquiring approximately $20 million worth of shares, which will increase its ownership of Oncocyte from under 10 percent to approximately 16 percent at the close of the transaction, expected for next week.
Ron Andrews, Oncocyte's CEO, said in a statement that the proceeds will help facilitate the company's planned expansion activities as it prepares to launch two new assays this year: DetermaIO, a gene expression test for identifying likely responders to immune checkpoint inhibitors, and DetermaTX, a targeted cancer genotyping panel intended to run alongside that immunotherapy predictor.
The funds will also support the further development of Oncocyte's planned blood-based cancer monitoring products and could be used to invest in or acquire complementary businesses or technologies.
According to the firm, there are currently no binding agreements in place for such acquisitions.