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Transgenomic Raises $2.4M in Private Placement

NEW YORK (GenomeWeb) – Transgenomic said after the close of the market on Wednesday that it raised $2.375 million in gross proceeds from a private placement.

The financing was raised through a syndicate of new and existing institutional and other accredited investors, and funding will be used for general corporate and working capital purposes, including activities supporting Transgenomic's ICE COLD-PCR technology, the company said.

The company's common shares for the private placement were priced at $3.25 per share, which represents a 10 percent premium to Transgenomic's closing share price of $2.95 on Oct. 21. For each share of common stock purchased, the investors will receive a warrant to purchase .5 shares of the company's common stock at an exercise price of $4 per share. In the aggregate Transgenomic issued about 730,000 shares of its stock and 370,000 warrants, it said.

Earlier this year, the firm completed a financing that raised $7 million from affiliates of life sciences investment firm Third Security. Transgenomic's stock moved to the Nasdaq Capital Market in May.