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DermTech to Raise $65M Through Private Placement

NEW YORK — DermTech, a developer of molecular diagnostics for skin cancer and other dermatologic disorders, said on Monday that it has agreed to sell approximately $65 million in stock to undisclosed institutional investors.

Under the terms of the private placement, DermTech will sell about 2,467,724 shares of common stock at $10.50 per share, as well as 3,199 shares of Series B-1 convertible preferred stock and 524 share of Series B-2 convertible preferred stock at $10,500 per share.

During early morning trading on the Nasdaq, shares of DermTech were down $.56 at $11.37.

Upon approval of the private placement by shareholders, each share of Series B-1 stock will automatically convert into 1,000 shares of DermTech common stock. Each Series B-2 share will be convertible into 1,000 shares of DermTech common stock following shareholder approval of the placement as long as the conversion does not increase the holder's stake in the company to more than 9.99 percent.

The private placement is expected to close on or around March 4. Cowen served as the lead placement agent, with William Blair acting as joint placement agent.

About a year ago, La Jolla, California-based DermTech was acquired by special purpose acquisition company Constellation Alpha Capital.