NEW YORK (GenomeWeb) – OncoCyte announced on Wednesday that it has closed a $10 million private placement with two unnamed existing investors.
According to OncoCyte, the investors agreed to buy 7,936,508 shares of the company's common stock at $1.26 per share. OncoCyte said that it has already received $8 million from the stock sale and that one investor has committed to purchasing $2 million worth of additional shares before April 30.
During early morning trading on Thursday, shares of OncoCyte were trading up nearly 2 percent at $1.325.
OncoCyte intends to the use the proceeds of the placement to continue development of its liquid biopsy diagnostic tests for early cancer detection, for complementary acquisitions, and for working capital and other general corporate purposes.
In November, OncoCyte disclosed that the market launch of its lung cancer diagnostic DetermaVu, which would be the firm's first commercialized product, had been delayed due to technical issues during a clinical validation study. It also reported ending the third quarter of 2017 with cash and cash equivalents totaling $11 million.