Transgenomic, Inc. (NASDAQ:TBIO), a global biotechnology company advancing precision medicine through advanced diagnostic tests and clinical and research services, today announced that it has moved to simplify and strengthen its capital structure by entering into a conversion agreement with the holders of its outstanding Series A and Series B convertible preferred stock and by finalizing an amendment to its Loan and Security Agreement with affiliates of Third Security, LLC that extends the maturity date until November 2017.
Transgenomic’s President and Chief Executive Officer Paul Kinnon commented, “We believe that Third Security’s support evidenced by the conversion of the outstanding shares of Series A and Series B preferred stock will help simplify our equity structure and thereby position us for the growth we anticipate in the new year. The conversion of the preferred stock eliminates certain preferences. In 2015, we focused on building a strong foundation to support the commercialization of our broadly-enabling ICE COLD-PCR™ technology, which should serve us well in our drive to accelerate its adoption and increase its use. We believe this revised equity structure is better aligned with our growth plans going forward.”
Conversion Agreement
Under the terms of the conversion
agreement, the holders of Transgenomic’s Series A and Series B
convertible preferred stock elected to convert all of the outstanding
preferred shares, and all accrued and unpaid dividends on the preferred
shares, into shares of Transgenomic’s common stock. In connection with
the conversion, Transgenomic issued an aggregate of 6,780,179 shares of
common stock to the preferred stockholders. Following this conversion,
no shares of Series A or Series B convertible preferred stock remain
outstanding. Further details regarding the conversion agreement are
outlined in Transgenomic’s Current Report on Form 8-K filed today with
the Securities and Exchange Commission.
Amendment to Loan Agreement
Additionally, Transgenomic
entered into an amendment to its loan and security agreement with
affiliates of Third Security, LLC, which, among other things, provides
that the lenders will waive specified events of default, modifies
certain covenants and extends the repayment and maturity dates to
November 2017.
About Transgenomic
Transgenomic,
Inc. is a global biotechnology company advancing personalized
medicine in cardiology, oncology, and inherited diseases through
advanced diagnostic technologies, such as its revolutionary ICE
COLD-PCR™ and its unique genetic tests provided through its Patient
Testing business. Transgenomic also provides specialized clinical and
research services to biopharmaceutical companies developing targeted
therapies. Transgenomic’s diagnostic technologies are designed to
improve medical diagnoses and patient outcomes.
Forward-Looking Statements
Certain statements in
this press release constitute “forward-looking statements” of
Transgenomic within the meaning of the Private Securities Litigation
Reform Act of 1995, which involve known and unknown risks, uncertainties
and other factors that may cause actual results to be materially
different from any future results, performance or achievements expressed
or implied by such statements. Forward-looking statements include, but
are not limited to, those relating to Transgenomic’s expectations with
respect to the effect of the conversion of the preferred stock. The
known risks, uncertainties and other factors affecting these
forward-looking statements are described from time to time in
Transgenomic's filings with the Securities and Exchange Commission,
including in Transgenomic’s Annual Report on Form 10-K, filed with the
Securities and Exchange Commission on April 15, 2015. Any change in such
factors, risks and uncertainties may cause the actual results, events
and performance to differ materially from those referred to in such
statements. Accordingly, Transgenomic claims the protection of the safe
harbor for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995 with respect to all statements
contained in this press release. All information in this press release
is as of the date of the release and Transgenomic does not undertake any
duty to update this information, including any forward-looking
statements, unless required by law.
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