NEW YORK (GenomeWeb News) – Trovagene announced late on Tuesday the pricing of a public offering of 1.15 million units and said that its shares will begin trading on the Nasdaq Capital Market today under ticker symbol "TROV".
In connection with its listing on the Nasdaq, the San Diego-based molecular diagnostics firm has effected a one-for-six reverse stock split.
Trovagene has priced it public offering of the 1.15 million units at $8 per unit, with each unit consisting of two shares of its common stock and one warrant to purchase one share of common stock. The units began trading on the Nasdaq today under ticker symbol "TROVU".
The common stock and warrants are not separately transferable until either the underwriters exercise an overallotment option in full or 45 days after the date of the prospectus, whichever comes first. Each warrant has an exercise price of $5.32 per share and can be exercised upon the separation of the units. They expire five years from the closing of the offering.
When separately transferable, the warrants will trade on the Nasdaq under ticker symbol "TROVW".
Aegis Capital is the sole book-running manager on the offering, and Summer Street Research Partners and Brean Murray, Carret & Co., are co-managers. The underwriters have a 45-day option to purchase up to an additional 172,500 units to cover overallotments, if any.
The offering is expected to close on June 4 and to bring in gross proceeds of $9.2 million. Net proceeds will go toward Trovagene's R&D activities and working capital, as well as general corporate purposes and the acquisition of other companies, products, or technologies, though no such purchases are imminent, Trovagene said.
Also, in connection to its move to the Nasdaq, the company's stock has stopped trading on the OTCQB.
In Wednesday morning trading, shares of Trovagene were down 19 percent at $3.95.