Progenity Inc. (NASDAQ:PROG) jumped 8% after announcing the closing of an underwritten public offering of 40 million common shares plus warrants to buy up to 40 million common shares at $1 per share and related warrant. The exercise price of the warrants is $1 per share and will be exercisable immediately with an expiry of five years from the issuance date.
Additionally, the company has given the underwriter a 30-day option to buy another six million common shares and associated warrants to acquire approximately 6 million common shares. Notably, the underwriter has partially exercised the option with the purchase of 1.932 million common shares.
After the offering closed, the company received net proceeds of around $27.1 million after accounting for commissions, underwriting discounts, and offering expenses. Most importantly, Progenity is offering all the shares and warrants. The company’s vision is to transform healthcare and become personal and more precise by enhancing disease diagnosis and patient outcomes. PROG is worth watching in the coming weeks.
Market Reaction:
On Tuesday, PROG stock surged 8.27% to $0.82 with more than 14.78 million shares, compared to its average volume of 3.51 million shares. The stock has moved within a range of $0.7200 – 0.8400 after opening the trade at $0.74.
