Purchase Price 27% Above Closing Market Price on Feb 1, 2012
LOS ANGELES--(BUSINESS WIRE)-- Response Genetics, Inc. (NASDAQ:RGDX) announced today that it has entered into purchase agreements with investors to raise more than $7.8 million from the private placement of approximately 5,300,000 newly issued shares of its common stock, at a purchase price of $1.50 per share.
New investors accounted for the majority of the financing, while existing investors, as well as board members and senior management, made up the remainder. The signing of the purchase agreements occurred on Wednesday, February 1, 2012. Final closing of the shares is expected to occur on or before Monday, February 6, 2012.
“We are very pleased with this financing,” said Thomas Bologna, recently appointed Chairman and CEO of Response Genetics. “One of the first things we wanted to do was to strengthen our balance sheet, which we’ve accomplished. We plan to use the proceeds to help us move forward in strengthening and building our business.”
The securities sold in the private placement have not been registered under the Securities Act of 1933, as amended, or state securities laws and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission (SEC) or an applicable exemption from the registration requirements. Response Genetics, Inc. has agreed to file a registration statement with the SEC covering the resale of the shares of common stock issued in the private placement. This press release shall not constitute an offer to sell or the solicitation of an offer to buy Response Genetics, Inc.’s common stock.
About Response Genetics, Inc.
Response Genetics, Inc. (“RGI”) (the “Company”) (NASDAQ:RGDX) is focused on the development and sale of molecular diagnostic tests for cancer. RGI’s technologies enable extraction and analysis of genetic information from genes derived from tumor samples stored as formalin-fixed and paraffin-embedded specimens. In addition to diagnostic testing services, RGI generates revenue from the sales of its proprietary analytical pharmacogenomic testing services of clinical trial specimens to the pharmaceutical industry. The Company was founded in 1999 and its principal headquarters are located in Los Angeles, California. For more information, please visit www.responsegenetics.com.
Forward-Looking Statement Notice
Except for the historical information contained herein, this press release and the statements of representatives of RGI related thereto contain or may contain, among other things, certain forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements involve significant risks and uncertainties. Such statements may include, without limitation, statements with respect to the Company’s plans, objectives, projections, expectations and intentions, such as the ability of the Company, to successfully consummate the transactions contemplated by a purchase agreement or to successfully file a registration statement with the SEC, and other statements identified by words such as “projects,” “may,” “could,” “would,” “should,” “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans” or similar expressions.
These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties, including those detailed in the Company’s filings with the Securities and Exchange Commission. Actual results, including, without limitation, actual sales results, if any, or the application of funds, may differ from those set forth in the forward-looking statements. These forward-looking statements involve certain risks and uncertainties that are subject to change based on various factors (many of which are beyond the Company’s control). The Company undertakes no obligation to publicly update forward-looking statements, whether because of new information, future events or otherwise, except as required by law.
Response Genetics, Inc.
Investor Relations Contact:
The Trout Group LLC
Michaela Parnell, 646-378-2956
Media Relations Contact:
Barry Sudbeck, 415-318-4261
KEYWORDS: United States North America California
INDUSTRY KEYWORDS: Health Biotechnology Clinical Trials Genetics Oncology Pharmaceutical