Cancer Genetics Closes $2.625 million Convertible Note Financing
Published on: Wednesday, July 18th, 2018 View all Media
RUTHERFORD, N.J., July 18, 2018 (GLOBE NEWSWIRE) — Cancer Genetics, Inc. (Nasdaq:CGIX), a leader in enabling precision medicine for oncology through molecular markers and diagnostics, today announced the closing of a $2.625 million convertible note financing with a single institutional investor.
John A. Roberts, Chief Executive Officer of Cancer Genetics, commented, “This capital raise helps the Company continue to execute on our strategy of consolidating operations and expanding our biopharma business. We plan to utilize this capital to assist with funding our 2018 transformation and strategic plan to streamline our business and execute against a path to profitability with an emphasis on becoming a leader in oncology-focused testing, genomic services and biomarker insight capabilities.”
The Note is convertible at any time at a fixed price of $0.80 per share and accrues interest at the rate of 10% per annum. The Note matures in eighteen months, and the holder has certain redemption rights beginning six months after closing. There was no placement agent in connection with the financing.
As announced previously, the Company has engaged Raymond James & Associates, Inc. as a financial advisor. Raymond James, along with Cancer Genetics, is in discussions with multiple parties to execute on options for the Company’s strategic direction. These discussions may include raising additional capital, acquiring complementary assets or companies, the sale of the Company and other strategic transactions or partnerships.
ABOUT CANCER GENETICS
Cancer Genetics, Inc. is a leader in enabling precision medicine in oncology from bench to bedside through the use of oncology biomarkers and molecular testing. CGI is developing a global footprint with locations in the US, Australia and China. We have established strong clinical research collaborations with major cancer centers such as Memorial Sloan Kettering, The Cleveland Clinic, Mayo Clinic, Keck School of Medicine at USC and the National Cancer Institute.
The Company offers a comprehensive range of laboratory services that provide critical genomic and biomarker information. Its state-of-the-art reference labs are CLIA-certified and CAP-accredited in the US and have licensure from several states including New York State.