Cancer Genetics Closes $2.625 million Convertible Note Financing

Cancer Genetics (NASDAQ:CGIX) has announced the closing of a $2.625 million convertible note financing with a single institutional investor.

As quoted in the press release:

John A. Roberts, Chief Executive Officer of Cancer Genetics, commented, “This capital raise helps the Company continue to execute on our strategy of consolidating operations and expanding our biopharma business. We plan to utilize this capital to assist with funding our 2018 transformation and strategic plan to streamline our business and execute against a path to profitability with an emphasis on becoming a leader in oncology-focused testing, genomic services and biomarker insight capabilities.”

The Note is convertible at any time at a fixed price of $0.80 per share and accrues interest at the rate of 10% per annum.  The Note matures in eighteen months, and the holder has certain redemption rights beginning six months after closing. There was no placement agent in connection with the financing.

As announced previously, the Company has engaged Raymond James & Associates, Inc. as a financial advisor. Raymond James, along with Cancer Genetics, is in discussions with multiple parties to execute on options for the Company’s strategic direction. These discussions may include raising additional capital, acquiring complementary assets or companies, the sale of the Company and other strategic transactions or partnerships.

Click here to read the full press release.