NEW YORK (GenomeWeb News) – Rosetta Genomics said after the close of the market on Thursday that it has netted proceeds of about $6 million from a direct offering, and that it has regained compliance on at least one of two Nasdaq listing requirements that it previously failed to meet.
It added that it believes it has regained compliance with the second listing requirement.
In a document filed with the US Securities and Exchange Commission, the Israel-based molecular diagnostics firm said that it closed its direct offering on Thursday, selling 570,755 ordinary shares at $11.50 per share to various investors. Rosetta announced the direct offering last week.
Proceeds from the sale will go toward operations and other general corporate purposes, Rosetta said, including repayment or refinancing of existing debt, working capital, IP protection and enforcement, R&D, investments, and acquisitions.
It said that its existing funds, along with proceeds from the offering, will be able to fund its operations for at least the next 16 months.
Rosetta also said that it is now in compliance with a Nasdaq listing requirement calling for a closing bid price on its stock of at least $1. The company was warned by the exchange of its non-compliance in December and was given until May 29 to regain compliance by raising the bid price at or above $1 for at least 10 consecutive days.
On May 30, Rosetta received notification from Nasdaq that it had met that listing requirement.
The company added that as a result of $6 million direct offering it believes it is in compliance with another Nasdaq listing requirement calling for at least $2.5 million in stockholders' equity. Rosetta was warned in April that it was not in compliance with that requirement.
It is awaiting confirmation from Nasdaq that it fulfills all applicable requirements for continued listing on the Nasdaq Capital Market, it said in its SEC document.
Rosetta's fortunes have dramatically turned around recently after receiving a favorable coverage decision from designated Medicare contractor Novitas for its miRview mets2 assay for identifying tumor of origin in primary and metastatic cancer, including cancer of unknown or uncertain primary.
In addition, the firm recently effected a reverse one-for-15 reverse stock split which helped push up its share price. On May 14, the day before the reverse stock split, Rosetta's shares closed at $.14.
In Friday morning trade shares of Rosetta were down 3 percent at $13.35.