Vermillion, Inc. has announced that it has closed a previously announced private placement through which 8.0 million shares of the Company's common stock were purchased by Oracle Investment Management, Jack W. Schuler, Matthew W. Strobeck and other investors.
Gross proceeds of the private placement totaled approximately $13.2 million, with net proceeds totaling approximately $11.8 million after anticipated offering expenses. Emerging Growth Equities, Ltd. advised the company on this transaction.
As previously announced, Vermillion also issued warrants exercisable for 12.5 million shares of the Company's common stock at $1.46 per share as part of the close.
If and when the warrants are exercised, Vermillion will realize an additional $18.3 million in proceeds, bringing the total investment to $31.5 million before transaction costs.
Proceeds from this transaction will be used to increase test sales and improve reimbursement for OVA1, expand the commercial opportunity into new markets, and advance one or more next-generation ovarian cancer diagnostic tests.
Vermillion has also announced that its Board of Directors has approved an amendment to the Company's bylaws to increase the number of directors of the Company from six to eight persons, creating two new Class III director positions. This increase was required under the terms of the private placement.