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Transgenomic to Raise $8.3M in Private Placement

NEW YORK (GenomeWeb News) – Transgenomic today said that it has signed definitive agreements with a syndicate of institutional and other accredited investors to raise gross proceeds of $8.3 million in a private placement of its shares.

Under the purchase agreement, Transgenomic will issue an aggregate of 16.6 million shares of its common stock at $.50 per share, as well as five-year warrants to purchase up to an aggregate of 8.3 million shares of its common stock at an exercise price of $.75 per share.

Transgenomic said that it intends to use proceeds from the offering for general corporate and working capital purposes, in particular to accelerate commercialization of several of its genetic tests. The offering is expected to close on or about Jan. 30.

The syndicate includes new and existing investors, including entities associated with Third Security, said Transgenomic.

Lazard Capital Markets served as the lead placement agent for the offering, with Craig-Hallum Capital Group acting as co-placement agent.

In Friday morning trade on the OTC Bulletin Board shares of Transgenomic were down 24 percent at $.53.