NEW YORK (GenomeWeb) – Vermillion said today that it is issuing a private placement that could raise around $10.7 million.
The placement consists of about 3.7 million shares of Vermillion common stock to be sold at $1.40 per share — the stock's closing price on Feb. 10 — as well as warrants to purchase up to 2.8 million shares of common stock for $1.80 per share.
The warrants can be exercised six months after the placement closes and will expire five years after the date they are issued, or five days after Vermillion notifies investors that the closing price per share had exceeded the exercise price for 20 consecutive trading days.
According to the company, several Vermillion directors, members of management, and significant stockholders have agreed to purchase the shares.
The placement, which is expected to occur on Feb. 17, will raise $5.6 million before transaction costs from the offering of common stock, and another $5.1 million before transaction costs if all the warrants are exercised.
The company said it will use the proceeds for general corporate and working capital purposes.