GenMark Prices Public Offering of Common Stock

Rhea-AI Summary

GenMark Diagnostics (NASDAQ: GNMK) announced the pricing of its underwritten public offering of 7,253,886 shares at $9.65 each, aiming to raise approximately $70 million before expenses. The offering is set to close around May 11, 2020. The company has provided underwriters a 30-day option to purchase an additional 1,088,082 shares. Proceeds will support general corporate purposes, including working capital, R&D, and repayment of existing debts. Cowen and William Blair are leading the offering.

Positive

• Expected gross proceeds of $70 million to enhance working capital and fund R&D.
• Funds aimed at increasing manufacturing capacity and supporting future growth opportunities.

Negative

• Potential dilution of existing shareholders from the new share issuance.

CARLSBAD, Calif., May 06, 2020 (GLOBE NEWSWIRE) -- GenMark Diagnostics, Inc. (NASDAQ: GNMK) (“GenMark” or the “Company”), a molecular diagnostics company focused on developing and commercializing multiplex molecular diagnostic solutions designed to enhance patient care, improve key quality metrics, and reduce the total cost-of-care, today announced the pricing of its previously announced underwritten public offering of 7,253,886 shares of its common stock at a public offering price of $9.65 per share. The gross proceeds to GenMark, before deducting the underwriting discounts and commissions and estimated offering expenses, are expected to be approximately $70.0 million. The offering is expected to close on or about May 11, 2020, subject to customary closing conditions.

GenMark has granted the underwriters a 30-day option to purchase up to an additional 1,088,082 shares at the public offering price, less underwriting discounts and commissions.

Cowen and William Blair are acting as joint book-running managers for the offering. Canaccord Genuity is acting as lead manager for the offering. BTIG and Needham & Company are acting as co-managers for the offering.

GenMark intends to use the net proceeds from this offering for general corporate purposes, which may include, among other things, increasing its working capital, funding research and development, and capital expenditures, including menu expansion and increasing its manufacturing capacity and yield to address future market opportunities. GenMark may also use a portion of the net proceeds for the repayment of its existing indebtedness under its loan and security agreement with Solar Capital Partners

A shelf registration statement on Form S-3 relating to the public offering of the shares of common stock described above was filed with the Securities and Exchange Commission (the “SEC”) and became effective on December 7, 2018. A preliminary prospectus supplement and accompanying prospectus relating to the offering has been filed with the SEC and a final prospectus supplement relating to the offering will be filed with the SEC, and copies of each will be available on the SEC’s website located at http://sec.gov. Copies of the final prospectus supplement and accompanying prospectus may also be obtained when available, from Cowen and Company, LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, Attn: Prospectus Department, by email at PostSaleManualRequests@broadridge.com or by telephone at (833) 297-2926; or from William Blair & Company, L.L.C., Attention: Prospectus Department, 150 North Riverside Plaza, Chicago, IL 60606; Phone: (800) 621-0687; Email: prospectus@williamblair.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other 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 other jurisdiction.

ABOUT GENMARK

GenMark is a leading provider of multiplex molecular diagnostic solutions designed to enhance patient care, improve key quality metrics, and reduce the total cost-of-care. Utilizing GenMark's proprietary eSensor^® detection technology, GenMark's eSensor XT-8^® and ePlex^® systems are designed to support a broad range of molecular diagnostic tests with compact, easy-to-use workstations and self-contained, disposable test cartridges. GenMark’s ePlex: The True Sample-to-Answer Solution™ is designed to optimize laboratory efficiency and address a broad range of infectious disease testing needs, including respiratory, bloodstream, and gastrointestinal infections.  For more information, visit www.genmarkdx.com.

FORWARD-LOOKING STATEMENTS

This press release contains certain forward-looking information about GenMark that is intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are statements that are not historical facts. Words such as "expect(s)," "feel(s)," "believe(s)," "will," "may," "anticipate(s)" and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to, statements about the Company's expectations regarding its capital raising efforts, including the commencement of the public offering, the underwriters' exercise of their option to purchase additional shares and the Company's intended use of proceeds. All such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Company, which could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include, but are not limited to, risks related to: the Company's history of operating losses, the Company's ability to successfully commercialize its products, inherent risk and uncertainty in the protection of intellectual property rights, ability to maintain gross margins, regulatory uncertainties regarding approval or clearance for the Company's products, as well as other risks and uncertainties described under the "Risk Factors" contained in the Company's periodic and interim SEC reports, including but not limited to, its Annual Report on Form 10-K for the fiscal year ended December 31, 2019, its Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, and its Current Reports on Form 8-K filed from time to time with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof, and the Company does not undertake any obligation to revise and disseminate forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of or non-occurrence of any event.

Investor Relations Contact
Leigh Salvo
(415) 937-5404
ir@genmarkdx.com

 

FAQ

What is the recent public offering by GenMark Diagnostics?

GenMark Diagnostics priced an underwritten public offering of 7,253,886 shares at $9.65 per share, expected to raise approximately $70 million.

What will GenMark do with the proceeds from the public offering?

The proceeds are intended for general corporate purposes, including working capital, R&D, and repayment of existing debt.

When is the closing date for the GenMark stock offering?

The offering is expected to close on or about May 11, 2020.

Is there potential dilution for GenMark shareholders from the new offering?

Yes, new share issuance may lead to dilution of existing shareholders.

Who are the underwriters for GenMark's public offering?

Cowen and William Blair are acting as joint book-running managers, with Canaccord Genuity as lead manager.