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Bionano Genomics (NASDAQ:BNGO) lost ~9% premarket Friday after the life sciences company announced an agreement with certain healthcare-focused institutional investors to sell ~17.5M shares of its common stock to raise roughly $10M in gross proceeds.
As part of the agreement, the company will conduct a registered direct offering priced at the market under Nasdaq rules to sell shares or their equivalents for $0.571 apiece.
Concurrently, the San Diego, California-based firm announced a private placement to issue unregistered clinical milestone-linked warrants that, if fully exercised, would be worth $20M.
Under the private placement, Bionano (BNGO) will issue Series A warrants and Series B warrants, allowing investors to purchase up to ~35.0M shares of its common stock at $0.571 per share.
The company said the two types of warrant offerings issued to sell ~17.5M shares each will be exercisable once stockholders approve the transaction.
Bionano (BNGO) plans to use the net proceeds to repay debt, make capital expenditures, and conduct other general corporate purposes.