Cancer Genetics' target IPO price keeps on falling, from about $41.9 million back in May to a hopeful $14.3 million now.
The New Jersey diagnostics company has been steadily decreasing its number of offered shares, predicted price and expected proceeds, down to $29.3 million in October, $20.1 million in February and now $14.3 million with plans to tender 1.65 million shares between $10 and $12 each, according to a regulatory filing.
That sum could climb to $16.8 million if underwriters Aegis Capital and Feltl and Company exercise their over-allotment options in full, but even that would be just 35% of Cancer Genetics' best-case scenario in the spring.
And there's some immediacy: Cancer Genetics figures its current cash supply will keep it operating through March 31, but if the public offering doesn't go through by then, the company will have to find some new funding, which might not come on favorable terms.
However, if this IPO go-round is a success, Cancer Genetics plans to spend $2.5 million of the proceeds on R&D, $4 million to scale up its sales and marketing department, $2 million to fund its cancer diagnostic joint venture with Mayo Clinic, and the rest to pay down debt and fund ongoing expenses. The company plans to trade on the Nasdaq under the symbol "CGIX."
Cancer Genetics operates a New Jersey lab focused on state-of-the-art cancer testing, and the company develops molecular diagnostics for blood, urogenital and HPV-related cancers.
- here's the filing
Special Report: 2012: A lackluster year for medical device and diagnostics IPOs