NEW YORK (GenomeWeb News) – Signal Genetics plans to offer 2,272,000 shares of common stock at $10 to $12 per share through its initial public offering, the cancer molecular diagnostics company said in a prospectus filing with the US Securities and Exchange Commission.
Assuming an average price of $11 per share, the company expects to raise about $25 million through the offering, if the underwrites exercise their full over-allotment option for an additional 340,800 shares.
The New York City-based company plans to list its common stock on the NASDAQ Capital Market under the ticker symbol SGNL. Aegis Capital will serve as bookrunner for the IPO.
Signal Genetics plans to use $7.4 million of the proceeds from the offering to expand its commercialization efforts; $4.3 million to fund clinical development of its Myeloma Prognostic Risk Signature (MyPRS) test for asymptomatic monoclonal gammopathies (AMG); $3.2 million to establish a corporate headquarters in San Diego; $2.6 million to enhance the executive management team, including hiring a chief financial officer and a chief commercial officer; and $3.8 million would be used as working capital.
The company currently offers the MyPRS test, a microarray-based gene expression profile assay that predicts risk of early relapse, enabling physicians to stratify their patients and treatment options and identify genomic alterations that may affect which therapies doctors choose.
The test is conducted in a CLIA-certified lab in Little Rock, Ark., and the firm said that it can offer the test in 48 states. The company added in its regulatory filing that it is currently seeking licenses to offer the test to patients in New York and Rhode Island.
Signal Genetics also said it plans to launch a next generation sequencing service to help physicians characterize their multiple myeloma patients and to identify which targeted therapies might work best based on tumor mutations.
In addition, within the next 12 to 18 months the firm plans to expand its test menu to include tests for managing MM patients. It also is exploring the potential for using the MyPRS test to indicate progression to MM in patients with AMG, which are precursor conditions for MM.
The company launched in 2010 and recorded $4.3 million in revenue in 2013.