Transgenomic, Inc. (OTCBB:TBIO) today announced that it has entered into definitive agreements with institutional and other accredited investors to raise approximately $22.0 million in a private placement financing which includes an aggregate of $3.0 million in convertible notes issued in December to entities associated with Third Security, LLC, a leading life sciences investment firm, that will automatically convert into shares of Transgenomic common stock and warrants to purchase such common stock on the same terms as all investors in the private placement financing.
Pursuant to the purchase agreement, Transgenomic will issue an aggregate of 19,000,000 shares of the Company’s common stock at a price per share of $1.00, as well as five-year warrants to purchase up to an aggregate of 9,500,000 shares of common stock with an exercise price of $1.25 per share. In connection with the conversion of the convertible notes issued by the Company to the entities associated with Third Security, LLC, the entities will receive an aggregate of 3,000,000 shares of common stock and 1,500,000 warrants on the same terms as all investors in the private placement.
Net proceeds from this offering will be used for general corporate and working capital purposes, primarily to accelerate development of several of the company’s key initiatives. The offering is subject to standard and customary closing conditions.
Craig-Hallum Capital Group LLC served as sole placement agent for the offering.
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