CareDx Announces Closing of Public Offering of Common Stock

Rhea-AI Summary

CareDx, Inc. (Nasdaq: CDNA) has successfully closed a public offering of 3,906,250 shares of common stock priced at $32.00 per share, generating net proceeds of approximately $117.1 million. The underwriters also have a 30-day option to purchase an additional 585,937 shares. These funds are earmarked for working capital and general corporate purposes. The offering was conducted under a shelf registration statement, effective since June 9, 2020. Goldman Sachs & Co. LLC and Jefferies LLC served as joint book-running managers.

Positive

• Net proceeds from the offering expected to be approximately $117.1 million
• Funds intended for working capital and general corporate purposes
• Underwriters granted a 30-day option for additional shares

Negative

• Potential shareholder dilution due to additional shares being offered

SOUTH SAN FRANCISCO, Calif., June 15, 2020 (GLOBE NEWSWIRE) -- CareDx, Inc. (Nasdaq: CDNA), a leading precision medicine company focused on the discovery, development and commercialization of clinically differentiated, high-value healthcare solutions for transplant patients and caregivers, today announced the closing of its previously announced public offering of 3,906,250 shares of its common stock at a public offering price of $32.00 per share. In addition, CareDx has granted the underwriters a 30-day option to purchase up to 585,937 additional shares of its common stock. The net proceeds to CareDx from the offering are expected to be approximately $117.1 million, after deducting underwriting discounts and commissions and estimated offering expenses.  

CareDx intends to use the net proceeds from this offering for working capital and general corporate purposes.

Goldman Sachs & Co. LLC and Jefferies LLC are acting as joint book-running managers for the offering.  BTIG, LLC and Craig-Hallum Capital Group are acting as co-managers for the offering.

The securities described above were offered by CareDx pursuant to a shelf registration statement on Form S-3ASR (File No. 333-239049) previously filed with the Securities and Exchange Commission (the “SEC”) on June 9, 2020, which became effective immediately upon filing pursuant to SEC rules. A final prospectus supplement and accompanying prospectus related to the offering was filed with the SEC on June 11, 2020 and are available on the SEC’s website at www.sec.gov.  Copies of the final prospectus supplement and the accompanying prospectus relating to the offering may also be obtained from Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, NY 10282, by e-mail at prospectus-ny@ny.email.gs.com or by telephone at (866) 471-2526; or Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, 2nd Floor, New York, NY 10022, by e-mail at prospectus_department@jefferies.com or by telephone at (877) 821-7388.

This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.

About CareDx
CareDx, Inc., headquartered in South San Francisco, California, is a leading precision medicine solutions company focused on the discovery, development and commercialization of clinically differentiated, high-value healthcare solutions for transplant patients and caregivers. CareDx offers products, testing services and digital healthcare solutions along the pre- and post-transplant patient journey, and is the leading provider of genomics-based information for transplant patients.

Forward Looking Statements
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including expectations regarding the amount of proceeds expected from the offering. These forward-looking statements are based upon information that is currently available to CareDx and its current expectations, speak only as of the date hereof, and are subject to numerous risks and uncertainties, including risks associated with market conditions, as well as general economic and market factors, among others discussed in CareDx’s filings with the SEC, including the Annual Report on Form 10-K for the fiscal year ended December 31, 2019 filed by CareDx with the SEC on February 28, 2020 and the periodic reports that CareDx has subsequently filed with the SEC, and the prospectus supplement related to the offering filed with the SEC on or about the date hereof. Any of these may cause CareDx’s actual results, performance or achievements to differ materially and adversely from those anticipated or implied by CareDx’s forward-looking statements. CareDx expressly disclaims any obligation, except as required by law, or undertaking to update or revise any such forward-looking statements.

CONTACTS:
Investor Relations
Greg Chodaczek
347-620-7010
investor@caredx.com

FAQ

What is the recent public offering by CareDx (CDNA)?

CareDx announced a public offering of 3,906,250 shares at $32.00 each, generating net proceeds of approximately $117.1 million.

How will CareDx use the proceeds from the stock offering?

The proceeds will be used for working capital and general corporate purposes.

Who managed CareDx's public stock offering?

Goldman Sachs & Co. LLC and Jefferies LLC acted as joint book-running managers.

What is the potential impact of the offering on CareDx's shareholders?

The offering may lead to shareholder dilution due to the issuance of additional shares.

What were the details of CareDx's share offering on June 15, 2020?

The offering included 3,906,250 shares and allowed for an additional 585,937 shares to be purchased by underwriters.