Cancer Genetics was looking at a $41.9 million IPO when first it decided to go public last year, but now the company is seeking just $6 million in its initial offering, which it expects to close next week.
The New Jersey diagnostics outfit is offering 600,000 shares at $10 a pop, trading as of today on the OTCQB Marketplace under CGIX. Last we heard from the company it was planning to offer 1.65 million shares between $10 and $12 each and trade on the Nasdaq.
Cancer Genetics has been scaling its number of offered shares, predicted price and expected proceeds all through the process, starting with $41.9 million in May and dropping to $29.3 million in October, $20.1 million in February and $14.3 million last month.
And the IPO couldn't be better timed: Last month, Cancer Genetics said its cash on hand would keep it in business through the month of March, but that it might have to ferret out some new funding if the deadline got pushed, possibly facing unfavorable terms.
Once the offering is complete, the company plans to commit $2 million of the proceeds to fund its cancer diagnostics joint venture with the Mayo Clinic and use the rest to pay down debt and fund ongoing expenses. Gone are plans to invest in R&D and scale up sales staffing Cancer Genetics detailed in past filings.
- read Cancer Genetics' statement
- here's the S-1