NEW YORK (GenomeWeb News) – Response Genetics has launched a public offering of nearly 4.5 million shares of its common stock at $1.20 per share.
The Los Angeles-based molecular diagnostics firm said that it expects to raise about $4.8 million in net proceeds, which it will use for working capital and general corporate purposes. It could realize additional proceeds if underwriters of the offering exercise their over-allotment option of 669,666 shares.
The offering price is below Thursday's closing price on the Nasdaq of $1.32, and shares of Response Genetics dropped nearly 11 percent to $1.18 in early Friday trade after the offering was priced.
Last month the firm announced a 24 percent decline in Q3 revenues year over year and ended the quarter with $4.6 million in cash and cash equivalents. It subsequently announced that it had signed on four payors to provide access to the molecular diagnostic firm's tests.