NEW YORK (GenomeWeb News) – Med BioGene today said that it has signed an agreement with SEP Capital to sell nearly C$500,000 (US$434,000) in units to the investment firm in a private placement.
The deal comes on the heels of Med BioGene raising C$1.6 million through a private placement last month of 20 million units in two tranches. The Vancouver, BC-based molecular diagnostics firm said that SEP will invest all of its available cash reserves — C$475,979 as of Dec. 31, 2008 — in the placement.
SEP's investment will have the same terms as the private placement completed in June. Each unit is priced at C$.08 and consists of one common share and one-half of one common share purchase warrant. Each warrant entitles the holder to purchase one common share at a price of C$0.10 for a period of 24 months, subject to the acceleration by MBI of the expiration of the warrants if the closing price of the common shares on the TSX Venture Exchange is greater than C$0.30 for twenty or more consecutive trading days.
Med BioGene said that it will use the proceeds of the private placement for the development and commercialization of its LungExpress Dx and for general corporate purposes. The LungExpress Dx is a gene expression-based test for early-stage, non-small-cell lung cancer that analyzes the molecular profile of a patient's tumor to provide information to assist in tailoring treatment.