The suit alleged that Precipio failed to meet the obligations of a securities agreement signed by Transgenomic, which it acquired last year.
The suit alleges that Precipio is required to pay more than $2 million in debt owed by Transgenomic, which it acquired last year.
The offering was a follow-on to a capital raise during the summer that brought in $6 million. The company's CEO said the additional financing was needed to execute on its business plan.
The company is offering units consisting of preferred stock and warrants to purchase shares of its common stock.
More than 90 percent of voting Transgenomic shareholders gave the go-ahead to the deal. Upon completion of the merger, the new firm will take on the Precipio name.
The company will use the funds to complete its merger with Precipio Diagnostics, which is expected to close in the second quarter.
The firm said that its shares will begin trading on the OTCQB exchange starting on Feb. 22.
LifeLabs will have a non-exclusive license to the technology and use it in its mutation enrichment platform for cancer testing.
Under the agreement, Precipio would become a wholly owned subsidiary of Transgenomic, which would then adopt the new name Precipio.
JoyingBio will distribute Transgenomic's multiplexed ICE COLD-PCR kits in China and Biotron Healthcare will do the same in India.
Lawmakers have asked four direct-to-consumer genetic testing companies to explain their privacy policies and security measures, according to Stat News.
The Trump Administration has proposed a plan to reorganize the federal government, the Washington Post reports.
In Science this week: genetic overlap among many psychiatric disorders, and more.
The Economist writes that an increasing number of scientific journals don't do peer review.