Deal also to include warrants; company suspends at-the-market offering
By Devika Patel
Knoxville, Tenn., Dec. 23 – Vermillion, Inc. said it has negotiated a $10 million private placement of stock with Oracle Investment Management, Jack W. Schuler, Birchview Fund LLC and other investors.
The company will sell 6,944,445 common shares at $1.44 apiece. The price per share is a 2.7% discount to the Dec. 22 closing share price of $1.48 and is also the closing price on Dec. 18, the company said in a press release.
The investors will also receive three-year warrants for 4,166,659 shares, which are each exercisable at $2.00. The strike price is identical to the Dec. 22 closing share price.
Settlement was expected Tuesday.
Proceeds will enable Vermillion to expedite its Ova2 launch, as well as build our Adnexal mass registry, which is the foundation for portfolio and market expansion, and will also be used for working capital and general corporate purposes.
“We are pleased with the success of this capital raise. It will provide the funds necessary to propel our commercial transition," chairman, president and chief executive officer James LaFrance said in the press release. “With this additional round of financing, we are also suspending our at-the-market offering.”
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: | $10 million
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| Shares: | 6,944,445
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| Price: | $1.44
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| Warrants: | For 4,166,659 shares
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| Warrant expiration: | Three years
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| Warrant strike price: | $2.00
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| Investors: | Oracle Investment Management, Jack W. Schuler, Birchview Fund LLC
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| Pricing date: | Dec. 23
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| Settlement date: | Dec. 23
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| Stock symbol: | Nasdaq: VRML
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| Stock price: | $1.48 at close Dec. 22
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| Market capitalization: | $61.56 million
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