Progenity Announces $25 Million Private Placement
SAN DIEGO, Feb. 23, 2021 (GLOBE NEWSWIRE) -- Progenity, Inc. (“Progenity”) (NASDAQ: PROG), a biotechnology company with an established track record of success in developing and commercializing
molecular testing products, today announced that it has entered into a definitive securities purchase agreement with two leading healthcare-focused investment funds for the sale of units consisting
of shares of common stock and warrants to purchase common stock, as described below, in a private placement expected to result in gross proceeds to Progenity of approximately $25 million, before
deducting placement agent commissions and other offering expenses.
Pursuant to the terms of the securities purchase agreement, at the closing of the private placement, Progenity will issue units representing an aggregate of 4,370,629 million shares of common stock and warrants to purchase an aggregate of 4,370,629 million shares of common stock. The aggregate purchase price of each unit, which consists of one share of common stock plus a warrant to purchase one share of common stock, is $5.72. The warrants will have a per share exercise price of $6.86 and will be exercisable for cash at any time on or after the closing date and through the fifth anniversary of the closing date. The price per unit was based in part upon the average of the last five closing prices of the common stock on the Nasdaq Global Market. If exercised for cash, the warrants would result in additional gross proceeds to Progenity of approximately $30 million.
The private placement is expected to close on February 25, 2021, subject to the satisfaction of customary closing conditions. Additional details regarding the private placement will be included in a Form 8-K to be filed by Progenity with the Securities and Exchange Commission (“SEC”).
Progenity intends to use the net proceeds to support its operations, to invest in its molecular testing research and development program, to invest in research and development with respect to its precision medicine platform, and for working capital and general corporate purposes.
Piper Sandler & Co. served as lead placement agent on the offering with Raymond James & Associates, Inc. acting as co-placement agent.
The securities being 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 SEC or an applicable exemption from such registration requirements. Progenity has agreed to file a registration statement with the SEC covering the resale of the shares of common stock issuable in connection with the private placement and upon exercise of the warrants.