NEW YORK (GenomeWeb) – Cancer Genetics has reached a deal with Cantor Fitzgerald to sell up to $20 million of its common shares from time to time.
The firm also said that its cash burn rate for the second quarter is anticipated to reach $4.8 million.
In documents filed with the US Securities and Exchange Commission on Wednesday, Cancer Genetics said that the investment bank may sell shares deemed through an "at-the-market" offering, in which shares are offered at the prevailing market prices, or through other methods, including in privately negotiated transactions.
In afternoon trading on the Nasdaq today, Cancer Genetics' shares were down about 2 percent at $12.24.
It is not obligated to sell any shares as part of the deal, it noted.
Net proceeds from any sale will be used to fund Cancer Genetics' contributions to its OncoSpire joint venture with the Mayo Clinic; to expand its sales and marketing operations; to increase R&D efforts; and for strategic transactions, working capital, and other general corporate purposes, the firm said.
Cancer Genetics also said that it expects its cash burn for the three months ended June 30 to be about $4.8 million, or about $1.3 million more than its average cash burn. The increase primarily results from the timing of payments of premiums for its annual business renewal and the payment of employee bonuses.
The company also announced a deal earlier today with Harvard Pilgrim Healthcare to provide its cancer diagnostic services.