"This financing will bolster our balance sheet as we prepare to launch products for the clinical, research and point-of-care markets," said Howard Birndorf, chairman and CEO
Nanogen has announced that it will sell 6.8 million shares of its common stock to institutional investors at a price of US$2.94 per share, plus 1.0 million warrants exercisable at $4.00 per share for five years.
After deducting fees and expenses, Nanogen will receive approximately $18.9 million from the sale, which is being conducted pursuant to Nanogen's shelf registration statement filed in June 2005.
The sale is expected to close on or about Wednesday 28 September 2005.
Nanogen plans to use the net proceeds for working capital, acquisitions and other general corporate purposes.
"This financing will bolster our balance sheet as we prepare to launch products for the clinical, research and point-of-care markets for evaluating and diagnosing disease," said Howard Birndorf, chairman and CEO of Nanogen.
"The capital will help us proceed to the next level of growth and support the successful execution of our multi-product commercialisation strategy".
Seven Hills Partners acted as lead placement agent to Nanogen for this financing.
Stonegate Securities acted as co-placement agent.
Nanogen's advanced diagnostics provides researchers, clinicians and physicians worldwide with improved methods and tests to predict, diagnose and ultimately help treat disease.
The company's products include real-time PCR reagents, the NanoChip molecular biology workstation platform for molecular diagnostic applications, and a line of rapid point-of-care diagnostic tests.
Nanogen's ten years of pioneering research involving nanotechnology holds the promise of miniaturisation and continues to be supported for its potential for diagnostic and biowarfare applications.
