WaferGen Biosystems, a developer of genetic analysis systems, has signed a definitive agreement to sell redeemable convertible preferred shares in the company’s wholly owned Malaysian s
WaferGen Biosystems, a developer of genetic analysis systems, has signed a definitive agreement to sell redeemable convertible preferred shares in the company’s wholly owned Malaysian subsidiary, WaferGen Biosystems (M), in a private financing placement with total gross proceeds of USD1.5m.
Strategic investors participating in the financing, which the company expects will close this month, include Prima Mahawangsa, a wholly owned subsidiary of CAV Private Equity Management, and Expedient Equity Ventures.
Proceeds from this financing are expected to be used to manufacture and commercialize WaferGen’s SmartChip Real-Time PCR System.
Under the terms of the agreement, WaferGen has agreed to sell 666,666 redeemable convertible preferred Series B shares in the subsidiary for gross proceeds of USD1.5m. Each share of convertible preferred stock is exchangeable, at the election of the holder and subject to the terms of the financing documents, into one share of WaferGen common stock, at an effective exchange price of USD2.25 per share.
"We are pleased to announce the raising of additional capital to support our ongoing development and commercialization of the SmartChip Real-Time PCR System. We believe that the fact that we were able to sign definitive financing documents during such a difficult and uncertain economic time provides strong validation for the SmartChip platform and demonstrates the faith that investors have in this revolutionary product," says Alnoor Shivji, WaferGen’s chairman and chief executive officer.
"We are happy to welcome Prima Mahawangsa and Expedient Equity Ventures as new investors in WaferGen and are pleased to have the support of these experienced investors as we continue to advance the development of the SmartChip platform toward commercialization."
