NEW YORK – Epigenetics firm VolitionRx said Friday that it has signed agreements for a registered direct offering of stocks and warrants that could raise a total of $21.5 million.
The company is selling 12,727,273 shares of its common stock at $.55 per share, for gross proceeds of $7 million. In addition, it is offering milestone-linked warrants comprised of Series A warrants for up to 12,727,273 shares and series B warrants for up to 12,727,273 shares of common stock, also at $.55 per share. The milestone-linked series A and series B warrants have an exercise price of $.57 per share.
The offering is expected to close on Aug. 12, subject to customary closing conditions. H.C. Wainwright is acting as the exclusive placement agent for the offering.
The series A warrants can be exercised six months after issuance and expire either two years following the initial exercise date or 60 days after VolitionRx announces it has reached agreements to develop and commercialize a product, technology, or process with milestone payments, whichever comes earlier. The series B warrants can be exercised six months after issuance and expire on the earlier of five years following the initial exercise date or six months following an announcement that VolitionRx or a third party has received FDA approval for a product, technology, or process that uses the company's intellectual property.
VolitionRx has been developing blood-based diagnostics and patient monitoring tests that are based on the company's Nu.Q nucleosome quantification technology. Those tests can measure volumes of neutrophil extracellular traps, which are used to trap and kill bacteria and viral particles, in patients with diseases such as cancer and sepsis.