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Cancer Genetics to Raise $5.5M in Private Placement

NEW YORK (GenomeWeb) – Molecular diagnostics firm Cancer Genetics today announced that it has signed definitive agreements to sell 2,750,000 shares of common stock to institutional investors for roughly $5.5 million in gross proceeds.

For each share purchased, the investors will also receive an unregistered warrant to buy one-half of a share of common stock at an exercise price of $2.25 a share, CGI said. The warrants are exercisable six months from the date of issuance and expire five years after their initial exercise date.

CGI said that it intends to use the approximately $5 million in net proceeds of the offering, which is expected to close around Sept. 14, for general corporate purposes.

During early morning trading on the Nasdaq, shares of CGI were down $.07 at $2.02.