Units comprised of stock, convertible preferreds, seven-year warrants
By Devika Patel
Knoxville, Tenn., April 14 – CareDx, Inc. arranged a private placement of units to raise about $14.1 million on April 12, according to an 8-K filed Thursday with the Securities and Exchange Commission. The deal settled on April 14. Leerink Partners LLC, M.M. Dillon & Co. LLC and Brookline Capital Markets were the agents.
The company sold about 592,000 units of one common share, five 0% series A mandatorily convertible preferred shares and three warrants at $23.94 per unit.
Each preferred initially converts to common stock at $3.99 per common share.
The warrants are each exercisable at $4.98 for seven years. The strike price is a 3.49% discount to the April 11 closing share price of $5.16. The conversion price is a 22.67% discount to that price.
Proceeds will be used for working capital, acquisitions and general corporate purposes.
The Brisbane, Calif., company has developed a blood-based test used to monitor heart transplant recipients for acute cellular rejection.
| Issuer: | CareDx, Inc.
|
| Issue: | Units of one common share, five series A mandatorily convertible preferred shares and three warrants
|
| Amount: | $14.1 million (approximate)
|
| Units: | 592,000 (approximate)
|
| Price: | $23.94
|
| Dividends: | 0%
|
| Conversion price: | $3.99
|
| Warrants: | Three warrants per unit
|
| Warrant expiration: | Seven years
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| Warrant strike price: | $4.98
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| Agents: | Leerink Partners LLC, M.M. Dillon & Co. LLC and Brookline Capital Markets
|
| Pricing date: | April 12
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| Settlement date: | April 14
|
| Stock symbol: | Nasdaq: CDNA
|
| Stock price: | $5.16 at close April 11
|
| Market capitalization: | $62.71 million
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