Cancer Genetics (CGIX) Enters 2.75M Share Registered Direct Offering

September 9, 2016 7:33 AM EDT

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Cancer Genetics, Inc. (Nasdaq: CGIX) announced that it has entered into definitive agreements with institutional investors for an offering of 2.75 million shares of common stock with gross proceeds of approximately $5.5 million in a registered direct offering.

Concurrently in a private placement, for each share of common stock purchased by an investor, such investor will receive from the Company an unregistered warrant to purchase one-half of a share of common stock. The warrants have an exercise price of $2.25 per share, will be exercisable six months from the date of issuance, and will expire five years from the initial exercise date. The closing of the offering is expected to take place on or about September 14, 2016, subject to the satisfaction of customary closing conditions.

Rodman & Renshaw, a unit of H.C. Wainwright & Co., LLC, acted as the exclusive placement agent in connection with this offering.

Net proceeds from the offering are expected to be approximately $5 million. Cancer Genetics intends to use the net proceeds from the offering for general corporate purposes.

The shares of common stock described above (but not the warrants or the shares of common stock underlying the warrants) are being offered pursuant to a shelf registration statement (File No. 333-196374). Such shares of common stock may be offered only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement.

The warrants and the shares of common stock underlying the warrants to be issued in the offering have not been registered under the Securities Act of 1933, as amended, or applicable state securities laws. Accordingly, the warrants and underlying shares of common stock underlying the warrants may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws.



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