IRVINE, Calif., March 20, 2013 (GLOBE NEWSWIRE) -- CombiMatrix Corporation (Nasdaq:CBMX), a molecular diagnostics company performing DNA-based testing services for developmental disorders and cancer, announced today that it has entered into an agreement to issue securities in a registered direct offering to an existing institutional investor that will result in gross proceeds to the Company totaling $2.0 million.
The Company entered into a definitive purchase agreement with the investor pursuant to which the Company has agreed to sell 130,000 shares of common stock at a negotiated price of $3.05 per share and approximately 1,610 units consisting of Series B convertible preferred stock and warrants. Each unit consists of one share of Series B convertible preferred stock and a warrant to purchase approximately 171 shares of common stock, at an exercise price of $3.49 per share. Each unit will be sold at a negotiated price of $1,000. In total, the Series B preferred is convertible into 528,000 shares of common stock and the warrants are exercisable for 275,000 shares of common stock.
The warrants are not exercisable for six months following their issue date and will expire on the fifth anniversary of the date the warrants become exercisable. The Series B preferred stock is convertible at $3.05 per share and accrues an annual dividend of 6 percent beginning six months after closing. The closing of the offering is expected to take place on or prior to March 22, 2013, subject to the satisfaction of customary closing conditions. The estimated net proceeds to the Company from the offering, after deducting placement agent fees and other estimated offering expenses payable by us, are expected to be approximately $1.76 million, to be used for general corporate purposes. With the net proceeds from this offering, the Company projects to have an unaudited cash and equivalents balance of approximately $3.3 million.