Vermillion launches offering of series B convertible preferreds concurrently with stock sale

By Abigail W. Adams

Portland, Me., April 12 – Vermillion Inc. launched an offering of series B convertible preferred stock concurrently with an offering of common stock, according to a 424B5 filling with the Securities and Exchange Commission.

The convertible preferred stock is convertible into 100 shares of common stock.

Piper Jaffrey is the sole underwriter for the offering.

The offering is not a traditional convertible preferred stock offering but rather the convertible portion is being including more for structuring purposes, a market source said.

Following the closing of the offering, Vermillion will hold a shareholder meeting to seek approval of the issuance of common shares upon conversion of the preferred stock.

The series B convertible preferred stock will automatically convert upon receipt of shareholder approval, according to the 424B5 filing.

There is no guarantee shareholder approval will be received and that the preferred stock will be convertible.

Investors that participated in a May 2013 private placement were given the right to participate in any future offerings of Vermillion’s equity securities.

The series B preferred stock is being offered to investors who would own more than 19.99% of outstanding common stock if they were to participate in the concurrent common stock offering.

Proceeds from the convertible preferred stock and concurrent common stock offerings will be used for general corporate purposes.

Vermillion is an Austin, Texas-based bio-analytical company focused on gynecologic disease.

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