Interleukin Genetics just got a $12 million shot in the arm, a private placement funding that will be crucial to its survival as a developer of genetic tests for chronic conditions.
As Mass High Tech/Boston Business Journal reports, Interleukin had only recently disclosed it was at risk of running out of cash by the end of May. Additionally, executives didn't think they'd be able to raise more money before they could get a new diagnostic test study accepted into a peer-reviewed journal.
But the cash came through. Interleukin said it sold more than 43.7 million shares at 27 cents apiece. Additionally, Interleukin issued warrants to buy another 32.8 million shares, also at 27 cents each.
Interleukin, which is based in Waltham, MA, is doing everything it can to prolong its survival. According to the story, the company has disclosed plans to pursue broad cost cutting ranging from slashing genetic test processing costs to subleasing. Plans also call for selling certain product lines and rolling out PST, its genetic test to measure periodontal disease risk.
These aggressive changes come under founder Kenneth Komman's guidance. He took over the CEO slot last August in an attempt to reverse the company's sliding fortunes, which have been battered by a drop in genetic test sales. Komman remains as president and CEO.
- read the release
- here's the MHT/BBJ story