NEW YORK (GenomeWeb News) – GenMark Diagnostics has filed with the US Securities and Exchange Commission to offer 4.6 million shares of common stock.
The Carlsbad, Calif.-based molecular diagnostics developer filed its preliminary prospectus for the offering on Wednesday. It didn't say when it expects the offering to become effective.
Assuming an offering price of $5.44 per share — its closing price on the Nasdaq Global Market on June 7 — net proceeds would be roughly $22.9 million. The underwriters have an over-allotment option to purchase up to an additional 690,000 shares, which if exercised in full would bring the total net proceeds to around $26.4 million.
GenMark said that it intends to use approximately $10.3 million for research and development, including license or technology acquisitions, menu expansion, and development of its NexGen System. Around $6.2 million would support sales and marketing efforts, and the rest of the funds would be used as working capital and for other general corporate purposes.
The firm currently sells the XT-8 system, a molecular diagnostics platform that gained US Food and Drug Administration clearance in 2006. GenMark said it has an installed base of 102 analyzers with customers.
The NexGen System the firm is developing integrates automated nucleic acid extraction and amplification with its eSensor detection technology, providing –sample-to-answer capabilities.
In addition, GenMark expects to file for FDA clearance this year for its respiratory viral panel test. If cleared, it would be the firm's fourth test product to get FDA approval, following its cystic fibrosis genotyping test, warfarin sensitivity test, and thrombophilia risk test.
Last month, GenMark reported that its first-quarter revenues had nearly doubled to $764,403 year over year, while its net loss increased 35 percent to $6.6 million, or $.56 per share. As of the end of the first quarter it had $17.1 million in cash and cash equivalents.
Following the offering, GenMark would have roughly 16.3 million shares of common stock outstanding.
Canaccord Genuity is the sole book-running manager for the offering, and William Blair is co-lead manager.
The firm's shares closed down 5 percent at $5.18 in Wednesday trade.