Deal includes warrants; proceeds used to increase test sales for OVA1
By Devika Patel
Knoxville, Tenn., May 9 - Vermillion, Inc. said it plans a $13.2 million private placement of stock with Oracle Investment Management, Jack W. Schuler, Matthew W. Strobeck and other investors.
The company will sell 8 million common shares at $1.65 apiece. The price per share is a 13.01% premium to the May 8 closing share price of $1.46.
The investors will also receive 12.5 million warrants, which are each exercisable at $1.46. The strike price is identical to the May 8 closing share price.
Proceeds will be used to increase test sales and improve reimbursement for OVA1, to expand the commercial opportunity into new markets and to advance one or more next-generation ovarian cancer diagnostic tests.
Austin, Texas-based Vermillion specializes in the discovery, development and commercialization of novel high-value diagnostic tests that help physicians diagnose, treat and improve outcomes for patients.
| Issuer: | Vermillion, Inc.
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| Issue: | Common shares
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| Amount: | $13.2 million
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| Shares: | 8 million
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| Price: | $1.65
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| Warrants: | 12.5 million warrants
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| Warrant strike price: | $1.46
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| Investors: | Oracle Investment Management, Jack W. Schuler, Matthew W. Strobeck
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| Pricing date: | May 9
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| Stock symbol: | Nasdaq: VRML
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| Stock price: | $1.46 at close May 8
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| Market capitalization: | $29.47 million
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