NEW YORK (GenomeWeb News) – Cancer Genetics priced its initial public offering at $10 per share today, expecting to raise gross proceeds of $6 million.
Shares of the Rutherford, NJ-based cancer diagnostics company were expected to begin trading today on the OTCQB Marketplace under ticker symbol "CGIX". Cancer Genetics is offering 600,000 shares of its common stock. The $10 price is at the low end of a $10 to $12 range that the company previously said it anticipated.
Aegis Capital is the sole book-running manager for the offering, and Feltl and Co. is the co-manager. Cancer Genetics has granted the underwriters a 45-day option to purchase up to 90,000 additional shares to cover any over-allotments.
The offering is anticipated to close on April 10, Cancer Genetics said.
The company filed to go public in December 2011, saying at the time that it hoped to raise net proceeds of about $48.6 million. More recently, the company lowered the expected proceeds from the offering several times. A few weeks ago, it said that net proceeds from the IPO were anticipated at $4.6 million.
In its amended Form S-1/A filed with the US Securities and Exchange Commission this week, Cancer Genetics said that $2 million of the net proceeds will go toward funding its joint venture with the Mayo Foundation for Medical Education and Research to develop oncology diagnostic services and tests using next-generation sequencing. All remaining net proceeds will be used to fund ongoing operations and expansion of the company.