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Progenity Raises $40M in Private Placement

NEW YORK – Progenity closed a $40 million private placement on Monday, according to a document filed with the US Securities and Exchange Commission.

According to the document, certain institutional and accredited investors have agreed to purchase an aggregate of 16,194,332 units representing 16,194,332 shares of the company's common stock, as well as warrants to purchase up to 16,194,332 shares of common stock. Each unit was priced at $2.47.

The warrants are immediately exercisable at $2.84 per share and if exercised for cash would provide Progenity additional proceeds of about $46 million.

Piper Sandler served as lead placement agent for the offering, with Raymond James acting as co-placement agent.

Progenity said in the SEC filing it plans to use the money to support its operations, to invest in its molecular testing research and development program, to invest in research and development for its precision medicine platform, and for working capital and general corporate purposes.

Earlier this month, the San Diego-based company announced that it will close its genetic laboratory to focus on its drug delivery technologies and therapeutics businesses.