NEW YORK (360Dx) – Shares of Chembio Diagnostics jumped this morning on news that the company had decided not to proceed with a previously announced public offering of up to $25 million of its common stock.
In morning trading, shares of the firm on the Nasdaq were up more than 13 percent at $8.70.
The firm said that its decision to withdraw the stock offering came because of an assessment by its management that found current equity market conditions are not conducive for an offering on terms that would be in the best interests of its stockholders.
At the time of the offering's announcement, the Medford, New York-based firm said that net proceeds would to be used for general corporate purposes; to fund the proposed acquisition of OpTricon; and to support its business growth strategy, including increasing the size of its global sales force, broadening US manufacturing automation, expanding and improving its facilities, and advancing its product development efforts.