LOS ANGELES, Sept. 20, 2013 (GLOBE NEWSWIRE) -- Response Genetics, Inc. (Nasdaq:RGDX), a company focused on the development and sale of molecular diagnostic tests for cancer, today announced that it has entered into definitive agreements with institutional investors for the sale of 932,805 shares of its common stock in a registered direct offering at $2.05 per share, the closing price on September 19, 2013. Gross proceeds of the offering, before deducting the placement agent fee and offering expenses, are expected to be approximately $1.9 million.
The offering is expected to close on or about September 25, 2013, subject to the satisfaction of customary closing conditions. Response Genetics intends to use the net proceeds from the offering primarily to expedite the integration of the recently acquired proprietary FDA-cleared and Medicare-reimbursed Tissue of Origin test for difficult to diagnose solid tumors and all associated assets, as more fully described in the Company's press release dated August 26, 2013 and related Form 8-K.
"This additional capital is primarily intended to facilitate a focused and expedited integration of this portfolio enhancing product," said Thomas Bologna, Chairman and Chief Executive Officer of Response Genetics. "In conjunction with this effort, we are excited to begin immediate construction of additional laboratory space in our Los Angeles facility. We intend to offer this proprietary Tissue of Origin test, Response Dx: TOO TM, to new and existing customers starting in the first quarter of 2014."Ladenburg Thalmann & Co. Inc., a subsidiary of Ladenburg Thalmann Financial Services Inc. (NYSE MKT:LTS), acted as the placement agent for this offering. The offering is being made pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission. A prospectus supplement related to the offering will be filed with the Securities and Exchange Commission. Copies of the registration statement, final base prospectus and accompanying prospectus relating to the offering may be obtained from the Securities and Exchange Commission's website at www.sec.gov or from Ladenburg Thalmann & Co. Inc., 520 Madison Avenue, 9th Floor, New York, New York 10022. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction. Any offer will be made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement.