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CombiMatrix to Raise $2.4M in Private Placement

NEW YORK (GenomeWeb News) – CombiMatrix announced today that it will issue securities to certain accredited investors in a private placement that is expected to bring in proceeds of $2.4 million.

CombiMatrix said that it will sell Series C convertible preferred stock in two tranches. It expects the first tranche to close within the next two days and the second tranche to close following stockholder approval.

The first tranche has an initial conversion price of $3.05 per common share, which is subject to adjustment. It also includes warrants to purchase 125 percent of the number of shares underlying the Series C convertible preferred stock at an initial exercise price of $3.77 per share.

The Series C convertible preferred stock accrues an annual dividend of 6 percent, according to the firm. It noted that the warrants are not exercisable for six months and are exercisable for five years thereafter, and the preferred stock is not convertible until stockholder approval has been obtained.

The Irvine, Calif.-based molecular testing services company said it will receive $1.2 million in gross proceeds upon closing of the first tranche. It also intends to file a proxy statement this week to seek shareholder approval for the second tranche, which also is expected to bring in $1.2 million in gross proceeds.

The latest financing follows a direct offering from CombiMatrix in March that raised $2 million. CEO Mark McDonough said in a statement today that the two recent financings enable the company to "substantially improve our balance sheet and concurrently invest in the prenatal market where we are finding commercial success."

He noted the firm has shown "triple-digit volume growth in the past two quarters in our core prenatal testing market, and the addition of this capital will help us continue to ramp the business on our path to profitability."

CombiMatrix last month announced preliminary results for the first quarter of 2013, noting that billable prenatal chromosomal microarray analysis tests were up 124 percent year over year.

The firm will report its first-quarter financial results later this week.

In Monday morning trade on the Nasdaq, shares of CombiMatrix were up 5 percent at $3.63.

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