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WaferGen to Raise $30.4M

By a GenomeWeb staff reporter

NEW YORK (GenomeWeb News) – WaferGen Biosystems today announced it has entered into definitive agreements to raise $30.4 million in a private placement financing of equity and debt.

The agreements are with Great Point Partners, Deerfield Management, and Merlin Nexus, as well as certain members of WaferGen's board and management.

Net proceeds will be used to expand commercialization of WaferGen's SmartChip Real-Time PCR system and related products, as well as for working capital and general corporate purposes.

"Our strategy is to accelerate the building of a sales force and distribution channels worldwide," Alnoor Shivji, chairman and CEO of WaferGen, said in a statement. "At the same time, in response to market demand, we plan to expand the applicability of this research tool to increase the number of genomic research disciplines that can benefit from the high-throughput SmartChip system."

The private placement consists of $15.2 million of non-voting convertible preferred stock and $15.2 million of non-voting convertible notes due November 2014.

The preferred stock is convertible into common stock at $.52 per share and has a coupon of 5 percent per year. The notes are convertible into non-voting convertible preferred stock, which may be convertible into common stock at $.57 per share and carry an interest rate of 5 percent annually.

Investors will also receive five-year warrants to buy about 56 million shares of common stock at an exercise price of $.62 per share.

Oppenheimer acted as lead placement agent for the financing.

In early trade on the OTC Bulletin Board, shares of WaferGen were up 7 percent at $.49.

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