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Response Biomedical Files for $7.8M Raise

NEW YORK (GenomeWeb News) – Response Biomedical has filed with Canadian regulators to raise C$8 million (US$7.8 million), the company said this week.

Proceeds from the offering will be directed at continued product development, sales and marketing, working capital, operating losses, and other general corporate purposes.

The proposed terms of the offering, which is expected to be completed before the end of the year, will entitle each shareholder to a certain number of rights for each common share of Response Biomedical stock. Each right will be exercisable for one unit, consisting of once common share and one common share purchase warrant.

The price to buy each right is anticipated to be equal to half of the lesser of C$.1493 and the volume weighted average trading price for the company's stock during the 10 days leading up to and including the date of the final prospectus related to the offering.

The Vancouver, British molecular diagnostics firm also said that it has entered into a letter of intent with OrbiMed Advisors to commit at least C$5 million in units, not otherwise purchased pursuant to the exercise of rights under the offering.

Last week, Response Biomedical filed its completed restated financial statements for full-year 2011 and the first two quarters of 2011.