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CombiMatrix Stockholders Approve Second Tranche of Series A Preferred Stock Financing; Announces 1-for-10 Reverse Split of



CombiMatrix Stockholders Approve Second Tranche of Series A Preferred Stock
Financing; Announces 1-for-10 Reverse Split of Common Stock and Nasdaq-Listed
Warrants

IRVINE, Calif., Dec. 4, 2012 (GLOBE NEWSWIRE) -- CombiMatrix Corporation
(Nasdaq:CBMX), a molecular diagnostics company performing DNA-based testing
services for developmental disorders and cancer diagnostics, today announced
that its stockholders approved the sale of shares of the Company's Series A
Preferred Stock associated with a second tranche of the equity financing that
was originally announced on October 1, 2012. Upon closing the first tranche,
the Company received gross proceeds of $1.05 million from the investors. The
Company filed a proxy statement to seek stockholder approval to raise the
remaining $1.45 million, which approval was obtained at a special meeting of
stockholders held on November 29, 2012.

The Company also announced that its Board of Directors and stockholders have
approved a 1-for-10 reverse split of its common stock, to become effective as
of the close of business on December 4, 2012. As a result of the reverse stock
split, a 1-for-10 reverse split of the Company's Nasdaq-listed warrants also
will occur at the same time.

The CombiMatrix Board of Directors implemented the reverse split with the
objective of regaining compliance with the minimum bid price listing
maintenance requirements of The Nasdaq Capital Market. The reverse split also
will have the effect of increasing the number of shares of common stock
available for issuance by the Company. The Company's stockholders approved the
reverse split at the same special meeting of stockholders.

CombiMatrix Chief Executive Officer Judd Jessup said, "In recent months, we
have achieved a number of goals that we expect will strengthen stockholder
value, including refocusing the Company's commercial efforts towards the fast
growing prenatal genetic testing market, achieving annualized organic sales
growth of greater than 50 percent in that category for the 2012 third quarter,
and reducing expenses to a level that significantly lowers our breakeven
point. By going ahead with this reverse split, we expect to regain compliance
with the minimum bid price listing maintenance requirements of The Nasdaq
Capital Market."

Computershare Shareowner Services LLC, CombiMatrix's transfer agent, is acting
as the exchange agent for the reverse split. Stockholders and warrantholders
of record as of close of business on December 4, 2012 will receive the forms
and notices to exchange their existing shares and/or warrants for the new
shares and/or warrants from the exchange agent, or from their bank, broker or
other nominee holder. Stockholders will not receive fractional shares in
connection with the reverse stock split.  Instead, stockholders who would
otherwise be entitled to receive fractional shares of common stock are
entitled to receive cash (without interest or deduction) from the exchange
agent in lieu of such fractional shares upon the submission of a letter of
transmittal by a stockholder holding the shares in book-entry form and, where
shares are held in certificated form, upon the surrender of the stockholder's
underlying stock certificates. The cash payment to be received by any such
stockholder will be determined by multiplying (x) the closing price per share
of the CombiMatrix common stock as reported on The Nasdaq Capital Market on
December 4, 2012, by (y) the fraction of one share owned by such
stockholder. Stockholders who hold stock certificates evidencing their shares
of CombiMatrix common stock and warrantholders who hold warrant certificates
evidencing their Nasdaq-listed warrants of CombiMatrix are advised that they
should not send in their stock certificates or warrant certificates until they
receive a letter of transmittal, which will contain detailed instructions for
exchanging their existing stock certificates and/or warrant certificates.

The Company expects that the split-adjusted shares of its common stock and its
split-adjusted Nasdaq-listed warrants will begin trading on The Nasdaq Capital
Market at the open of the market on December 5, 2012. The Company also expects
that its shares will continue to trade under the symbol "CBMX" and its
Nasdaq-listed warrants will continue to trade under the symbol "CBMXW," each
with a "D" included as a suffix to the symbol for 20 trading days to signify
that the reverse split has occurred.

About CombiMatrix Corporation

CombiMatrix Corporation, through its wholly owned subsidiary, CombiMatrix
Molecular Diagnostics, Inc. (CMDX), is a molecular diagnostics laboratory
which offers DNA-based testing services to the prenatal, pediatric and
oncology markets. The Company performs genetic testing utilizing Microarray,
FISH, PCR and G-Band Chromosome Analysis. CMDX offers prenatal and pediatric
testing services for the detection of abnormalities of genes at the DNA level
beyond what can be identified through traditional technologies. CMDX was also
the first commercial clinical laboratory in the United States to make
comprehensive DNA-based genomic analysis of solid tumors, including breast,
colon, lung, prostate and brain tumors, available to oncology patients and
medical professionals. Additional information about CMDX is available at
www.cmdiagnostics.com or by calling 1-800-710-0624.

Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995

This press release contains forward-looking statements within the meaning of
the "safe harbor" provisions of the Private Securities Litigation Reform Act
of 1995. These statements are based upon our current expectations, speak only
as of the date hereof and are subject to change. All statements, other than
statements of historical fact included in this press release, are
forward-looking statements. Forward-looking statements can often be identified
by words such as "anticipates," "expects," "intends," "plans," "goal,"
"predicts," "believes," "seeks," "estimates," "may," "will," "should,"
"would," "could," "potential," "continue," "ongoing," "objective," similar
expressions, and variations or negatives of these words and include, but are
not limited to, statements regarding a second tranche of the Company's Series
A Preferred Stock financing, the timing of the effectiveness of the reverse
split on The Nasdaq Capital Market and the ability to regain compliance with
the minimum bid price listing maintenance requirements of The Nasdaq Capital
Market. These forward-looking statements are not guarantees of future results
and are subject to risks, uncertainties and assumptions that could cause our
actual results to differ materially and adversely from those expressed in any
forward-looking statement. The risks and uncertainties referred to above
include, but are not limited to: our ability to consummate the second tranche
of the Series A Preferred Stock financing and the timing of such second
tranche; the risks associated with the timing of the effectiveness of the
reverse split on The Nasdaq Capital Market and our ability to regain
compliance with the minimum bid price listing maintenance requirements of The
Nasdaq Capital Market; our ability to successfully expand the base of our
customers and strategic partners, add to the menu of our diagnostic tests in
both of our primary markets, develop and introduce new tests and related
reports, optimize the reimbursements received for our testing services, and
increase operating margins by improving overall productivity and expanding
sales volumes; our ability to successfully accelerate sales, allow access to
samples earlier in the testing continuum, steadily increase the size of our
customer rosters in both developmental medicine and oncology; our ability to
attract and retain a qualified sales force; rapid technological change in our
markets; changes in demand for our future products; legislative, regulatory
and competitive developments; general economic conditions; and various other
factors. Further information on potential factors that could affect our
financial results is included in our Annual Report on Form 10-K, Quarterly
Reports of Form 10-Q, and in other filings with the Securities and Exchange
Commission. We undertake no obligation to revise or update publicly any
forward-looking statements for any reason, except as required by law.

CONTACT: Company Contact:
         R. Judd Jessup
         President & CEO, CombiMatrix Corporation
         Tel (949) 753-0624
        
         Media Contact:
         Len Hall
         VP, Media Relations
         Allen & Caron
         Tel (949) 474-4300
         len@allencaron.com
        
         Investor Relations Contact:
         John Baldissera
         BPC Financial Marketing
         Tel (800) 368-1217

CombiMatrix Corporation
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