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Avant Diagnostics Restructures, Issues Private Placement

NEW YORK (GenomeWeb) – Avant Diagnostics said today that it has entered a securities purchase agreement through which it has raised gross proceeds of $650,000 and paid down a portion of the company's debt.

Avant designated and sold through the agreement 650,000 shares of Series A preferred stock, which will control a majority of the voting power of the company. Avant now plans a reverse stock split of its common stock, which will create 15 million shares of common stock outstanding. All outstanding shares of the series A preferred stock are to be converted into shares of common stock.

As part of the closing, Jeffrey Busch was named chairman of Avant's board of directors, John Brugmann was appointed to the board, and Mick Ruxin was made a board member and named president and CEO of Avant.

Additionally, certain company debtholders exchanged $1,824,856 owed for 516,155 shares of the series A preferred stock, roughly 26 million shares of series B preferred stock, and new notes for a principal amount of $265,091. Each share of series B preferred stock will be converted to 10 shares of the company's common stock. Some debtholders also waived their future rights to and security interests in Avant's assets.

Avant's lead product is its Theralink phosphoproteomics assay for assessing the activity of cancer signaling pathways and guiding therapy. It acquired the assay when it acquired Theranostics Health in 2016.