NEW YORK (GenomeWeb News) – Exact Sciences said after the close of the market on Monday that it intends to make a public offering to raise about $23.6 million.
The company plans to offer 3,125,000 shares of its common stock at $8 per share, generating net proceeds of $23.6 million, which it expects to use toward general and corporate working capital purposes, including product development, as well as efforts to get clearance from the US Food and Drug Administration for its Cologuard colorectal cancer test.
The company has said that it anticipates filing a premarket approval application with FDA in late-2012 for Cologuard. A clinical trial for the test was begun during the summer.
A month ago, the Madison, Wis.-based company reported a 29 percent drop year over year in third-quarter revenues, while its R&D spending more than doubled due to the clinical trial.
RW Baird is acting as the sole book-running manager in the offering, with William Blair acting as co-manager. Exact Sciences has given the underwriters a 30-day option to purchase an aggregate of 468,750 additional shares of its common stock to cover over-allotment, if any.
The offering is being made by Exact Sciences pursuant to a shelf registration filed with SEC in September 2010, it said.
In early Tuesday trading, shares of the company's stock on Nasdaq were down about 5 percent at $8.