CombiMatrix Stockholders Approve Second Tranche of Series C Preferred Stock
Gross Proceeds Received from Two Funding Tranches Total $2.4 Million
Management Estimates Ending Cash at June 30, 2013 to be $5.6 Million
IRVINE, Calif., July 1, 2013 (GLOBE NEWSWIRE) -- CombiMatrix Corporation
(Nasdaq:CBMX), a molecular diagnostics company performing DNA-based testing
services for developmental disorders and cancer, announced today that its
stockholders approved the sale of shares of the Company's Series C Preferred
Stock associated with a second tranche of the equity financing that was
originally announced on May 6, 2013. Upon closing the first tranche, the
Company received gross proceeds of $1.2 million from the investors. The
Company filed a proxy statement to seek stockholder approval to raise the
remaining $1.2 million, which approval was obtained at the Company's annual
meeting of stockholders held on June 27, 2013.
The financing was through the sale of convertible preferred stock with both
tranches having a conversion price of $2.85759 per common share, subject to
future adjustments, and 125% warrant coverage with the first tranche of
warrants having an exercise price of $3.77 per share and the second tranche of
warrants having an exercise price of $3.55 per share.
As a result of this financing, the Company estimates that its cash and cash
equivalent balances, together with cash proceeds from recent common stock
warrant exercises, will be approximately $5.6 million as of June 30, 2013.
This press release shall not constitute an offer to sell or the solicitation
of an offer to buy the securities described herein, nor shall there be any
sale of such securities in any jurisdiction in which such offer, solicitation
or sale would be unlawful prior to the registration or qualification under the
securities laws of any such jurisdiction.
The securities in connection with the second tranche have not been registered
under the Securities Act of 1933, as amended, or any state securities laws,
and may not be offered or sold in the United States absent registration with
the Securities and Exchange Commission or an applicable exemption from such
registration requirements. CombiMatrix has agreed to file one or more
registration statements with the Securities and Exchange Commission covering
the resale of the shares of common stock issuable upon conversion of or in
connection with the preferred stock and upon exercise of the warrants.
About CombiMatrix Corporation
CombiMatrix Corporation provides valuable molecular diagnostic solutions and
comprehensive clinical support for the highest quality of care – specializing
in miscarriage analysis, prenatal and pediatric healthcare. CombiMatrix offers
comprehensive testing services for the detection of abnormalities of genes at
the DNA level beyond what can be identified through traditional
technologies.The Company performs genetic testing utilizing microarray, FISH,
PCR and G-Band chromosome analyses. Additional information about CombiMatrix
is available at www.combimatrix.com or by calling 1-800-710-0624.
Safe Harbor Statement under the Private Securities Litigation Reform Act of
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," similar expressions, and
variations or negatives of these words and include, but are not limited to,
statements regarding the financing described herein, projected financial
condition and results of operations, management's future business, operational
and strategic plans, momentum of our pre-natal and pediatric businesses, test
menu expansion, services and reports development and attracting greater
prenatal genetic screening business.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 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, steadily increase the size of our customer rosters in both
developmental medicine and oncology; lack of growth in the developmental
markets; our ability to attract and retain a qualified sales force; rapid
technological change in our markets; changes in demand for our future
products; the ability of microarray technology to become the standard of care;
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:
President & CEO, CombiMatrix Corporation
Tel (949) 753-0624
Len Hall, VP Media Relations
Allen & Caron, Inc.
Tel (949) 474-4300
Investor Relations Contact:
BPC Financial Marketing
Tel (800) 368-1217
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