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CombiMatrix Raises $6.7M in Private Placement

By a GenomeWeb staff reporter

NEW YORK (GenomeWeb News) – CombiMatrix raised $6.7 million in a private placement, the company announced after the close of the market on Thursday.

The company had announced the securities purchase agreement earlier in the week, saying it sought to sell nearly $6.8 million in newly issued shares of its common stock and warrants.

Accredited investors who participated in the placement included HLM Venture Partners, members of CombiMatrix's management team and board, and other qualified investors, CombiMatrix said.

HLM Partner Marty Felsenthal has joined the CombiMatrix board as a result of the investment.

Last year the company restructured its operations to focus on its diagnostics services business. In a statement today, President and CEO Judd Jessup said the new funds will allow CombiMatrix to expand its array-based tests, beef up its sales and marketing team, "and secure the financial resources necessary to execute on our plan."

The terms of the agreement called for CombiMatrix to sell 3.08 million units for about $2.19 per unit, with each unit consisting of one share of the company's common stock and one warrant to purchase .425 shares of common stock at an exercise price of $2.14 per share.

The unit price reflects the market value of CombiMatrix's stock, as determined by Nasdaq rules, plus about $.05 for the warrant component. The warrants are exercisable six months after the closing date and have a term of five years.