NEW YORK – Accelerate Diagnostics announced on Friday that it has priced a $15 million public offering and private placement.
Accelerate launched the proposed offering earlier this week after reporting last week that its full-year 2023 preliminary earnings dipped 5 percent year over year due to a challenging sales environment for instruments.
The developer of rapid testing systems for infectious diseases and antimicrobial resistance said in a statement that the offering consists of 6,860,659 units. Each unit comprises one share of common stock and one warrant to purchase one share of common stock.
In lieu of the latter units, certain investors will be offered pre-funded units consisting of one pre-funded warrant to purchase one share of common stock and one warrant to purchase one share of common stock, Accelerate said.
The public offering price for each unit is $1.50, and the public offering price for each pre-funded unit is $1.49. The firm also said that the warrants will have an exercise price of $1.65 per share, will be immediately exercisable, and will remain exercisable until five years after their original issuance.
Tucson, Arizona-based Accelerate also granted the underwriters a 30-day option to purchase up to an additional 1,029,098 shares of common stock as well as additional warrants to purchase up to 1,029,098 shares of common stock, in any combination, at the public offering price less underwriting discounts and commissions.
William Blair is acting as the sole bookrunning manager and Craig-Hallum Capital Group is acting as co-manager on the offering.
The gross proceeds from the public offering, which is expected to close on or about Jan. 23, are expected to be $10.3 million.
Along with the completion of the public offering, Accelerate will sell to its largest shareholder, the Jack W. Schuler Living Trust, a private placement of 1,156,069 units at a purchase price of $1.73 per unit. In addition, the trust has agreed to purchase an additional 1,560,693 units at a purchase price of $1.73 per unit on or before May 20, 2024. The gross proceeds from the private placement are expected to be $4.7 million.