NEW YORK (GenomeWeb News) – CombiMatrix will net an additional $1.2 million in funding after its stockholders approved the sale of the company's Series C Preferred Stock, the company said today.
CombiMatrix raised $1.2 million in a first tranche of equity financing in May. The second tranche of that financing was subject to stockholder approval, which was granted at the firm's annual meeting, held on June 27.
The proceeds from the two tranches total $2.4 million, providing the molecular diagnostics company with cash and cash equivalent balances of $5.6 million, as of June 30.
CombiMatrix's latest financing coincides with some concern about the Irvine, Calif.-based firm's balance sheet. Nasdaq recently extended a deadline until Aug. 20 for the firm to meet the exchange's requirement for $2.5 million in stockholder's equity to retain its listing.
Also, during the company's fourth-quarter 2012 earnings call in February, a Wall Street analyst noted that given the company's burn rate, it could run out of cash by summer. Former CEO Judd Jessup had responded that the firm would do a "number of things" to generate capital, and that he was optimistic that the firm would be able to raise additional money.
The recently concluded round of financing was through the sale of convertible preferred stock, CombiMatrix said. Both tranches had a conversion price of $2.85759 per common share, subject to future adjustments, as well as 125 percent warrant coverage. The first tranche of warrants had an exercise price of $3.77 per share and the second tranche of warrants had an exercise price of $3.55 per share.
Shares of CombiMatrix were trading at $3.00 on Monday morning, down roughly 6 percent from a previous close of $3.18.