Molecular diagnostics company OncoCyte (NYSE:OCX) announced that two investors have agreed to purchase nearly $8 million of its common stock in a registered offering.
Pura Vida Investments and another institutional investor combined for the $7.6 million offering, which was completed directly with the investors and included no placement agent fees.
OncoCyte is slated to sell more than 3.5 million common shares at a purchase price of $2.156 per share. The Irvine, Calif.-based company expects the offering to close during the week of Jan. 6, 2020.
The company plans to use proceeds to accelerate and support the commercial launch of its lung cancer treatment stratification test and to help the development of its DetermaVu liquid biopsy test, along with other corporate purposes.
The lung cancer treatment stratification test is designed to enable the identification of early-stage lung cancer patients at a high risk for recurrence, allowing for treatment when cancer may be more responsive to adjuvant chemotherapy. DetermaVu is designed to clarify if a patient’s lung nodules are benign, which can help to avoid potentially risky invasive diagnostic procedures, according to the company.
OncoCyte added that proceeds may also be used for future investments or acquisitions, although the company currently has no agreements for any such investment or purchase.
“The fact that we have increased our strong support from Pura Vida Investments, a top-tier, healthcare fund, we believe is testimony to our strategy and ability to execute,” OncoCyte CEO Ron Andrews said in a news release. “ Strengthening our balance sheet through smaller offerings priced at market allows us to remain flexible from a strategic perspective while rapidly progressing our commercialization efforts and market preparation for the first quarter 2020 launch of our Razor Genomics’ treatment stratification test. This financing leaves us well-positioned to continue the advancement and expansion of our suite of impactful tests for underserved decision points in the lung cancer care continuum.”