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Vermillion Offering $15 Million in Common and Preferred Stock

NEW YORK (360Dx) – Vermillion announced after the close of the market Thursday that it plans to make separate but concurrent offerings of its common and convertible preferred stock, with the aim of raising gross proceeds of $15 million.

The company will offer 10 million shares of its common stock at a price of $1.00 per share and 50,000 shares of its Series B Convertible Preferred Stock at a price of $100.00 per share. The convertible preferred shares are non-voting and each is convertible to 100 shares of Vermillion common stock.

The underwriter of the common stock offering, Piper Jaffray, has a 30-day option to buy an additional 1.5 million shares of common stock to cover any overallotments. Gross proceeds will be $16.5 million if the underwriter exercises this option in full.

Vermillion said it will use the funds "for working capital and general corporate purposes, including sales and marketing, portfolio expansion, and general administrative expenses."

In early morning trading on the Nasdaq, Vermillion's stock was down 28 percent to $.93 per share.