NEW YORK (GenomeWeb) – Transgenomic today announced that it has signed an agreement to sell roughly $3 million in restricted stock and warrants through a private placement.
According to the company, the placement includes 1.5 million shares of restricted common stock, as well as fully paid prefunded warrants to purchase up to approximately 700,000 shares of its common stock, in each case at a purchase price of $1.42 per share.
During early morning trading on the Nasdaq, shares of Transgenomic were trading down 7 percent at $1.55.
For each share of common stock issued and issuable upon exercise of the warrants, the investor will receive a warrant to purchase .55 of a share of common stock, the company said. The warrants to purchase those additional share are exercisable at a price of $1.66 per share beginning six months after the date of issuance and expire five years after they are initially exercisable.
Crede Capital Group subscribed for all by 28,000 shares in the funding, Transgenomic said.
The company said it will use the proceeds of the offering for general corporate and working capital purposes, including activities supporting its ICE COLD-PCR technology.