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GenMark Prices 7M Shares Offering; Stock Soars

By a GenomeWeb staff reporter

NEW YORK (GenomeWeb News) – GenMark Diagnostics has priced its public offering of nearly 7.1 million shares of common stock at $4.25 per share.

The Carlsbad, Calif.-based molecular diagnostics firm said that it expects net proceeds from the offering to be roughly $27.6 million. If the underwriters exercise the over-allotment option of nearly 1.1 million shares, the firm's net proceeds will be approximately $31.8 million.

GenMark plans to use around $12.4 million of the proceeds for R&D efforts including license or technology acquisitions, menu expansion, and development of its NexGen System. It also plans to use around $7.5 million for sales and marketing initiatives, and the rest of the proceeds for working capital and 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.

GenMark had initially expected to offer around 4.6 million shares when it filed for the offering last week.

Canaccord Genuity is the sole book-running manager for the offering, and William Blair is co-lead manager.

In early Friday trade on the Nasdaq, shares of GenMark jumped 31 percent to $5.66.

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