Cancer Genetics (NASDAQ: CGIX), an emerging leader in DNA-based cancer diagnostics, priced a $15 million secondary offering and began trading on the NASDAQ today.
The offering will bring in a sizable cash infusion to CGIX, setting the stage for continued expansion of the Company's sales and marketing efforts, as well as further product development and commercialization. In addition, it will enable the Company to fund its joint venture investment with Mayo Clinic and retire mezzanine financing.
CGIX is part of a growing trend in healthcare – personalized cancer care based on genetic information. The Wall Street Journal covered this revolutionary shift in a front-page article on Tuesday: "Gene Breakthroughs Spark a Revolution in Cancer Treatment."
Unlike many of its peers, which trade an average of nearly 100x sales, CGIX already has multiple tests in the market that are producing revenue. Yet today the stock can be picked up for less than 9x sales.
Regional broker-dealer Feltl & Co. issued a buy rating on the stock earlier this year with a $17.50 price target. With this new capital infusion and the increased exposure CGIX will get as a NASDAQ-listed company, it's likely it could trade for quite a bit more in the coming months.
Be sure to sign up for our weekly newsletter to stay up-to-date on future developments with this exciting story as it works to become the leader in the personalization of cancer treatment based on molecular diagnostics. Also keep an eye out for our next interview with the Company's CEO, Panna Sharma, who will be able to shed further light on the Company's many successes and future prospects.
Disclosure: The subject security is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.
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