NEW YORK (GenomeWeb) – Food safety test developer Roka Bioscience announced today that it has signed an agreement to privately sell roughly 22,500 shares of preferred stock for $22.5 million.
According to the company, each share of the Series A preferred stock is convertible into approximately 1,428 shares of common stock, which is equivalent to a purchase price of $.70 per common share. For each preferred share, Roka said, purchasers will receive a five-year warrant to buy about 1,428 shares of common stock at $.70 per share.
Conversion of the preferred stock into common stock will occur automatically upon shareholder approval of the transaction at an upcoming meeting, the company added. Proceeds of the placement, which is expected to close on Sept. 21, will be used for general corporate purposes.
Roka shares were down 32 percent to $.80 in morning trading on the Nasdaq.