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Veracyte Files for Proposed Public Offering of Common Stock

NEW YORK (GenomeWeb) – Veracyte has filed with the US Securities and Exchange Commission for a proposed public offering of 5 million shares of its common stock, the firm said after the close of the market on Wednesday.

The genomic testing company also expects to grant the underwriters a 30-day option to purchase up to 750,000 additional shares at the public offering price.

Veracyte said it intends to use the net proceeds for working capital and other general corporate purposes, and will use a portion of the proceeds to repay around $12.4 million of its term loan. It may also use some of the proceeds to acquire or invest in complementary businesses, technologies, or other assets, the company said in a statement, although it does not have any current commitments to do so.

Morgan Stanley and SVB Leering will be lead book-running managers, and William Blair, will also serve as a book-running manager. BTIG and Janney Montgomery Scott will be co-managers.

Veracyte filed a shelf registration statement with the SEC, along with a preliminary prospectus supplement and accompany prospectus, which are available on the SEC website.

Earlier this week, Veracyte reported that its first quarter 2019 revenues climbed 47 percent year over year to $29.5 million. The company also aims to become cash-flow breakeven by the end of the year.

On Thursday morning, Veracyte's stock was down 4 percent at $24.17 on the Nasdaq.