NEW YORK (GenomeWeb) – Chembio Diagnostics today priced its public offering of about 1.8 million shares of its common stock at $6.75 per share.
The company estimated net proceeds from the offering, which is expected to close on or about Feb. 13, to be $11.2 million.
Proceeds will be used for business expansion and working capital, including product development, operational expansion or improvements — such as new automated equipment and a facilities update, clinical trials, and other related activities — and sales and marketing, Chembio said.
Craig-Hallum is the sole book-running manager for the offering.
Chembio also said that it is terminating its at-the-market offering announced in June. The ATM program was set up for the firm to offer up to $21.2 million of its common stock from time to time. Chembio said it has offered no shares pursuant to the ATM offering.
Separately, the firm announced preliminary full-year 2017 revenues of between $23.7 million and $24.0 million. Chembio estimates cash and cash equivalents as of Dec. 31, 2017 to be about $3.7 million.
It also said that it has won a three-year tender from the Ethiopia Pharmaceutical Fund and Supply Agency to deliver its HIV 1/2 Stat-Pak assay. The contract, valued at $15.8 million, was awarded through the firm's distributor in Ethiopia. Shipments are expected to start during the second quarter. Â