NEW YORK – Biocept said on Thursday that it has priced a $5 million public offering of 1,176,470 shares of its common stock and warrants to purchase up to 2,352,940 shares at a combined offering price of $4.25 per share and accompanying warrant to purchase two shares.
The warrants, which have the same price per share, are exercisable immediately and will expire five years from their date of issuance. Subject to certain conditions, they may also be exchanged for half-shares of common stock in a non-cash transaction. In addition, the company has granted the underwriters a 45-day option to purchase up to an additional 176,470 shares of common stock and accompanying warrants to buy up to 352,940 shares at the public offering price, less discounts and commissions.
The offering is expected to close on May 26, with EF Hutton acting as the sole bookrunning manager and Brookline Capital Markets as lead manager.
Biocept, based in San Diego, plans to use the proceeds to advance CNSide, a liquid biopsy assay to detect and assess brain metastases in cerebral spinal fluid. It also intends to spend the funds on general corporate purposes.
The molecular diagnostics firm carried out a 1-for-30 reverse stock split last week and disclosed in a document filed with the US Securities and Exchange Commission that its stockholder equity as of March 31 was $2.4 million, short of the $2.5 million minimum needed to remain listed on the Nasdaq Capital Market.