This article has been updated to reflect the pricing, expected proceeds, and other terms of the offering.
NEW YORK – HTG Molecular Diagnostics on Friday priced a public offering of common stock and a private placement of warrants.
The Tucson, Arizona-based diagnostics firm launched a public offering of 25,476,989 shares of common stock at $.65 per share. The company expects net proceeds of roughly $16.6 million from the common stock offering, but it also has granted the underwriter a 30-day option to purchase up to 3,821,548 additonal shares at the offering price.
Cantor Fitzgerald is the sole book-running manager for the offering.
Concurrently with the public offering, HTG Molecular said that it has entered into a securities purchase agreement with certain institutional investors for the sale of 5,411,687 pre-funded warrants exercisable for an aggregate of 5,411,687 shares of its common stock at a purchase price of $.64 per pre-funded warrant. Each warrant will be immediately exercisable upon issuance and will have an exercise price of $0.01 per share. The gross proceeds from the private placement are expected to be approximately $3.5 million.
HTG said it expects both the public offering and private placement to close on Sept. 24.
The company had $11.8 million in cash and cash equivalents and $9.8 million in short-term investments as of June 30, according to its second quarter earnings announcement last month.
Shares of HTG Molecular were down 7 percent at $.75 in Friday morning trade on the Nasdaq.