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Veracyte Lands $40M in Private Placement

NEW YORK (GenomeWeb) – Veracyte today announced that it has entered into a definitive agreement to sell approximately $40 million in stock in a private placement.

Under the terms of the agreement, the investors will purchase 4,907,975 shares of common stock at $8.15 per share, the closing price on April 22, 2015. Investors include Broadfin Capital, Camber Capital, Deerfield, Longwood Capital Partners, and venBio.

South San Francisco, Calif.-based Veracyte said it intends to use the proceeds for research and development, product commercialization, and general corporate purposes. In fiscal year 2014, the firm's R&D spending rose 68 percent year over year, while SG&A costs increased 67 percent.

Piper Jaffray acted as sole lead placement agent and William Blair & Company acted as a co-placement agent.

Veracyte said it had $25.8 million in cash as of March 31, 2015.