NEW YORK (GenomeWeb News) – Transgenomic today said that it expects to raise $7 million in gross proceeds from the sale of 1,443,297 convertible preferred shares.
The Omaha, Neb.-based molecular diagnostics company said that it will sell the shares of Series B convertible preferred shares to affiliates of investment firm Third Security at $4.85 per share. The preferred shares will be convertible into common shares of Transgenomic on a one-for-one basis, it said.
Proceeds will go toward working capital requirements and general corporate purposes. The company previously raised $8.3 million in a private placement in early 2013.
"We are entering an important phase in the strategic transformation of the company, and this transaction provides us with the necessary capital to drive toward profitability," Transgenomic President and CEO Paul Kinnon said in a statement. "We can now focus on commercializing key assets, especially the Ice-Cold-PCR technology, while also improving our competitive position in the molecular diagnostics marketplace."
In January the firm announced it had applied to the Nasdaq to list its shares on the Nasdaq Capital Market. Transgenomic's shares currently trade on the OTC Market. The company also said at the time that it would initiate a one-for-12 reverse stock split.