Vermillion Announces Equity Financing
AUSTIN, Texas, May 9, 2013
AUSTIN, Texas, May 9, 2013 /PRNewswire/ -- Vermillion, Inc. (NASDAQ: VRML), a
molecular diagnostics company focused on gynecologic cancers and women's
health, announced that Oracle Investment Management, Jack W. Schuler, Matthew
W. Strobeck and other investors, have agreed, subject to closing conditions,
to make an initial investment of $13.2 million by purchasing 8.0 million
shares of the Company's common stock. Upon the closing of the transaction,
Vermillion will be issuing the investors 12.5 million warrants with a strike
price of $1.46. If and when the warrants are exercised, the company will
realize an additional $18.3 million in proceeds, bringing the total investment
to $31.5 million, before transaction costs.
Proceeds from this transaction will be used to increase test sales and improve
reimbursement for OVA1, expand the commercial opportunity into new markets and
advance one or more next-generation ovarian cancer diagnostic tests.
Certain matters discussed in this press release contain forward-looking
statements that involve significant risks and uncertainties, including
statements regarding Vermillion's plans, objectives, expectations and
intentions. These forward-looking statements are based on Vermillion's current
expectations. The Private Securities Litigation Reform Act of 1995 provides a
"safe harbor" for such forward-looking statements. In order to comply with the
terms of the safe harbor, Vermillion notes that a variety of factors could
cause actual results and experience to differ materially from the anticipated
results or other expectations expressed in such forward-looking statements.
Factors that could cause actual results to materially differ include but are
not limited to: (1) uncertainty as to Vermillion's ability to protect and
promote its proprietary technology; (2) Vermillion's lack of a lengthy track
record successfully developing and commercializing diagnostic products; (3)
uncertainty as to whether Vermillion will be able to obtain any required
regulatory approval of its future diagnostic products; (4) uncertainty of the
size of market for its existing diagnostic tests or future diagnostic
products, including the risk that its products will not be competitive with
products offered by other companies, or that users will not be entitled to
receive adequate reimbursement for its products from third party payors such
as private insurance companies and government insurance plans; (5) uncertainty
that Vermillion has sufficient cash resources to fully commercialize its tests
and continue as a going concern; (6) uncertainty whether the trading in
Vermillion's stock will become significantly less liquid; and (7) other
factors that might be described from time to time in Vermillion's filings with
theU.S. Securities and Exchange Commission(SEC). All information in this
press release is as of the date of this report, and Vermillion expressly
disclaims any obligation or undertaking to release publicly any updates or
revisions to any such statements to reflect any change in Vermillion's
expectations or any change in events, conditions or circumstances on which any
such statement is based, unless required by law.
This release should be read in conjunction with the consolidated financial
statements and notes thereto included in the company's most recent reports on
Form 10-K and Form 10-Q. Copies are available through theSEC's Electronic
Data Gathering Analysis and Retrieval system (EDGAR) atwww.sec.gov.
Feinstein Kean Healthcare
Liolios Group, Inc.
SOURCE Vermillion, Inc.
Press spacebar to pause and continue. Press esc to stop.