NEW YORK (GenomeWeb News) – CombiMatrix said after the close of the market on Monday that it has entered into a securities purchase agreement to sell almost $6.8 million of newly issued shares.
The firm will sell a combination of common stock and warrants in a private placement to accredited investors.
Net proceeds from the transaction will be used to fund growth initiatives and for general working capital purposes.
Under the terms of the agreement, CombiMatrix will 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.
The transaction is expected to close on April 7.
A year ago this month, CombiMatrix restructured its business to preserve cash and increase its focus on its diagnostics services business.