IRVINE, Calif., April 13, 2022 (GLOBE NEWSWIRE) — Oncocyte Corporation (Nasdaq: OCX), (“Oncocyte” or the “Company”), today announced the price of an underwritten public offering of 26,266,417 common stock, as well as warrants to purchase up to a total of 13,133,208.5 shares of its common stock. Each common share is being sold together with a warrant to purchase 0.5 common shares at a combined offering price of $1.3325 for aggregate gross proceeds of approximately $35 million, before discounts and underwriting commissions and fees offer payable by Oncocyte. The warrants have an exercise price of $1.53 per share, are exercisable immediately and will expire five years from the date of issue. The offering is expected to close on or about April 19, 2022, subject to the satisfaction or waiver of customary closing conditions.
BTIG and Needham & Company are acting as joint account holders for the offering.
The Company has also granted the underwriters a 30-day option to purchase up to 3,939,962 additional common shares and/or 3,939,962 additional warrants to purchase 1,969,981 common shares to be issued and sold pursuant to the public offering, in any combination thereof. , under the same conditions, at the public offer price, less discounts and technical commissions, to cover any over-allotments.
The Company intends to use the net proceeds from the offering primarily to promote the commercialization of DetermaRx™, including sales and marketing efforts and by conducting additional clinical studies to support clinical adoption of the test; to complete the development of DetermaIO™; complete development and begin commercialization of TheraSure™; and for the development of other future assays in our pipeline, including DetermaCNI™, DetermaTx™ and DetermaMx™. The Company also plans to use the net proceeds to pay for development costs associated with its activities under the collaboration agreement with Life Technologies Corporation (“LTC”), a subsidiary of Thermo Fisher Scientific, under which the Company has agreed to undertake certain development efforts with LTC and to collaborate with LTC in the commercialization of Thermo Fisher Scientific’s existing Oncomine Comprehensive Assay Plus and the Company’s DetermaIO™ assay for use with the Ion Torrent™ Genexus™ Integrated Sequencer from LTC and the Ion Torrent™ Genexus™ Purification System from LTC, in order to obtain in vitro diagnostic regulatory approval for these assays. We may use the net proceeds to make certain future and other milestone payments to former shareholders of companies we have acquired, including Chronix Biomedical, Inc. and Insight Genetics, Inc. if applicable milestones requiring such payments are met.
A shelf registration statement on Form S-3 (registration number 333-256650) relating to the securities offered has been filed with the Securities and Exchange Commission (“SEC”) and was declared effective on June 8, 2021. The offering will only be by means of a prospectus supplement and the accompanying prospectus. A preliminary prospectus supplement and accompanying prospectus relating to the offering have been filed with the SEC and are available free of charge on the SEC’s website at http://www.sec.gov. When available, electronic copies of the final prospectus supplement and accompanying prospectus relating to the proposed public offering may be obtained by contacting BTIG, LLC, 65 East 55th Street, New York, NY, 10022, or by telephone at (212) 593-7555 or by e-mail at [email protected]; or from Needham & Company, LLC, Attn: Syndicate Prospectus Department, 250 Park Avenue, 10th Floor, New York, New York 10177, or by telephone at 800-903-3268 or by e-mail at [email protected] needhamco.com.
This press release does not constitute an offer to sell or the solicitation of an offer to buy, and there will be no sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. Any offering, if any, will only be made by means of the prospectus supplement and accompanying prospectus forming part of the effective registration statement.
Oncocyte is a precision diagnostics and monitoring company whose mission is to improve patient outcomes by providing clear information that informs critical decisions in cancer diagnosis, treatment and monitoring. The Company, through its proprietary testing and pharmaceutical services business, aims to help save lives by accelerating cancer diagnosis and advancing cancer care. The Company’s tests are designed to provide clarity and confidence to physicians and their patients at every stage of post-diagnosis treatment. DetermaRx™ identifies patients with early-stage lung cancer who are at high risk of cancer recurrence and who may benefit from adjuvant chemotherapy. DetermaIO™, a gene expression assay currently used as a research tool only, assesses the tumor microenvironment to predict response to immunotherapies. The company’s pipeline of tests in development also includes DetermaTx™, which will assess the mutation status of a tumor, the DetermaCNI™ blood monitoring test and the DetermaMx™ long-term recurrence monitoring test. In addition, Oncocyte Pharmaceutical Services provides companies developing new cancer treatments with a full range of molecular testing services to support the drug development process.
DetermaRx™, DetermaIO™, DetermaTx™, DetermaCNI™, DetermaMx™ and TheraSure™ are registered trademarks of Oncocyte Corporation.
This press release contains statements that the Company considers to be “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statement that is not a historical fact (including, but without limitation, statements that contain words such as “will”, “believe”, “plan”, “anticipate”, “expect”, “estimate”, “may” and similar expressions) are forward-looking statements. These statements include those regarding, among other things, the Company’s ability to complete the financing, the intended use of proceeds and other statements that are not historical facts. Actual results may differ materially from the results anticipated in these forward-looking statements and, accordingly, such statements should be evaluated taking into account the many uncertainties that affect Oncocyte’s business, in particular those mentioned in the “Risk Factors” section of the preliminary prospectus supplement when filed with the SEC, together with the risk factors and other cautionary statements contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, which is available at SEC website. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they were made. Oncocyte undertakes no obligation to update these statements to reflect events that occur or circumstances that exist after the date on which they were made, except as required by law.
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