NEW YORK (GenomeWeb News) – WaferGen Biosystems today announced that its Malaysian subsidiary has signed a purchase agreement with an investor for a $5 million private placement.
The investor, the Malaysian Technology Development Corporation, will purchase the subsidiary's Series C-1 redeemable convertible preference shares at a price of $1.55 per share. MTDC has the right to acquire up to $2.5 million of Series C-2 preference shares of the subsidiary at $2.32 per share for up to 36 months after the closing, which is expected this month.
The redeemable convertible preference shares will be converted into shares of WaferGen Biosystems common stock on a one-for-one basis within one year of issuance, WaferGen said in a statement. MTDC had previously invested in WaferGen Biosystems.
WaferGen said that it plans to use net proceeds from the financing for general corporate and working capital purposes, including broad commercialization of its SmartChip Real-Time PCR system launched in August.
On Tuesday, the Fremont, Calif.-based company disclosed in a filing with the US Securities and Exchange Commission a $2 million loan agreement with Oxford Finance Corp.