NEW YORK (GenomeWeb News) – CombiMatrix today announced a private placement with certain accredited investors to raise $2.5 million.
The financing will be done in two tranches with the first tranche expected to close in two days and the second tranche pending shareholder approval.
The financing will be done through the sale of convertible preferred stock. In the first tranche the stock will have an initial conversion price of $.49112 and 100 percent warrant coverage at an initial exercise price of $.95 per share. Both the conversion price and warrant coverage term are subject to adjustment, CombiMatrix said. Gross proceeds from the first tranche are expected to be $1.05 million.
The company said it intends to file a proxy statement within the next 60 days for shareholder approval of the second tranche to raise the remaining $1.45 million.
"We believe this financing will enable the company to build on the momentum we are creating in the prenatal and pediatric markets with our expanded test menu," CombiMatrix President and CEO Judd Jessup said in a statement. "We are pleased to be strengthening our balance sheet and to be moving forward on our commercial initiatives."
In late June, the Irvine, Calif.-based company was warned by the Nasdaq that it was not in compliance with a listing requirement calling for a minimum bid price of $1 per share. CombiMatrix had 180 days to regain compliance.
In Monday morning trading, the company's stock was down 3 percent to $.64.