- Progenity Inc (NASDAQ: PROG) enters into a securities purchase agreement with investment funds to sell units of up to $25 million.
- The Company will issue units including 4.4 million common stock and warrants to purchase an aggregate of 4.4 shares.
- The aggregate offer price of $5.72 per unit represents a discount of around 5% from the last close price of $6.05 on Monday.
- Five-year warrants have an exercise price of $6.86. If exercised for cash, the warrants would result in additional gross proceeds of approximately $30 million. The private placement will close by February 25.
- Progenity will use the proceeds to support its operations, to invest in its molecular testing research and development program, to invest in research and development for its precision medicine platform, and working capital and general corporate purposes.
- Piper Sandler & Co. served as lead placement agent on the offering.
- Price Action: PROG is down 11.2% at $5.38 in market trading hours on the last check Tuesday.
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.