NEW YORK – Fulgent disclosed in a filing with the US Securities and Exchange Commission today that has signed an equity distribution agreement with investment bank Piper Sandler to sell up to $125 million worth of its common stock.
The sale of the shares are pursuant to a shelf registration filed earlier this year. The maximum proposed offering under that registration is $300 million.
Under the agreement, Piper Sandler may sell the shares from time to time through an at-the-market offering. The bank is entitled to a commission at a rate of up to 3 percent of the gross proceeds from each sale of shares under the deal.
Fulgent noted that it has no obligation to sell any of the shares and may at any time suspend offers under the equity distribution agreement. It said that it would use any net proceeds for working capital and general corporate purposes.
Based in Temple City, California, Fulgent offers clinical genetic testing using next-generation sequencing.
The firm earlier this week also filed a prospectus for the sale of 1,906,338 shares of common stock that may be reoffered or resold from time to time by certain selling stockholders. Fulgent wouldn't receive any proceeds from the sales of those shares.