Skip to main content
Premium Trial:

Request an Annual Quote

CombiMatrix to Raise $2M in Direct Offering

NEW YORK (GenomeWeb News) – CombiMatrix has signed an agreement with an institutional investor for a registered direct offering that is expected to provide the firm with $2 million in gross proceeds, or $1.76 million in net proceeds.

The firm said that it has entered into a definitive purchase agreement with the unnamed investor to purchase 130,000 shares of common stock for $3.05 per share and approximately 1,610 units consisting of Series B convertible preferred stock and warrants. Shares of CombiMatrix closed Tuesday at $3.20 on the Nasdaq.

Each of the units consists of one share of Series B convertible preferred stock and a warrant to purchase approximately 171 shares of common stock at an exercise price of $3.49 per share. Each unit will be sold to the investor at a negotiated price of $1,000, CombiMatrix said.

The Series B preferred stock is convertible into 528,000 shares of common stock at $3.05 per share and accrues an annual dividend of 6 percent beginning six months after closing of the transaction, expected on March 22.

The warrants are exercisable for 275,000 shares of common stock but are not exercisable until six months following their issue date. They will expire on the fifth anniversary of the date the warrants become exercisable, CombiMatrix said.

The firm intends to use the funds for general corporate purposes.

It said that following this financing it will have around $3.3 million in cash and cash equivalents.

CombiMatrix's shares were down 1 percent at $3.17 in Wednesday morning trade.

Last week the firm disclosed that it had been cautioned by Nasdaq that it is not in compliance with a listing requirement calling for a minimum $2.5 million in stockholders' equity. CombiMatrix said it is evaluating "various alternative courses of action to regain compliance" and it anticipates submitting a plan with Nasdaq by the April 25 deadline to maintain its Nasdaq listing.

The Scan

Positive Framing of Genetic Studies Can Spark Mistrust Among Underrepresented Groups

Researchers in Human Genetics and Genomics Advances report that how researchers describe genomic studies may alienate potential participants.

Small Study of Gene Editing to Treat Sickle Cell Disease

In a Novartis-sponsored study in the New England Journal of Medicine, researchers found that a CRISPR-Cas9-based treatment targeting promoters of genes encoding fetal hemoglobin could reduce disease symptoms.

Gut Microbiome Changes Appear in Infants Before They Develop Eczema, Study Finds

Researchers report in mSystems that infants experienced an enrichment in Clostridium sensu stricto 1 and Finegoldia and a depletion of Bacteroides before developing eczema.

Acute Myeloid Leukemia Treatment Specificity Enhanced With Stem Cell Editing

A study in Nature suggests epitope editing in donor stem cells prior to bone marrow transplants can stave off toxicity when targeting acute myeloid leukemia with immunotherapy.