A Medical Device Daily
WaferGen Biosystems (Fremont, California) a developer of genomic analysis systems, said that its Malaysian subsidiary, WaferGen Biosystems (M), has signed a purchase agreement with an investor for a $5 million private placement of the Malaysian subsidiary's Series C-1 redeemable convertible preference shares. WaferGen also said that it completed a secured credit facility with Oxford Finance for a loan in an aggregate principal amount of $2 million.
WaferGen expects to use the net proceeds from the financings for general corporate and working capital purposes, including for the broad commercialization of the WaferGen SmartChip Real-Time PCR system launched in August.
The investor in the private placement is Malaysian Technology Development (Lumpur), a development firm in Malaysia, which has previously invested in WaferGen's Malaysian subsidiary.
The purchase price of the Series C-1 preference shares is $1.55 per share and the closing is expected to occur in December 2010. The investor has also been granted a right to purchase up to $2.5 million of Series C-2 preference shares of the Malaysian subsidiary at a purchase price of $2.32 per share at any time within 36 months of the closing. The redeemable convertible preference shares will be converted into shares of common stock of WaferGen on a one-for-one basis within one year of issuance.
The Oxford credit facility is repayable over three years, and interest on loan is fixed at nearly 13% per annum.
The facility is secured by substantially all of the company's personal property other than intellectual property, and the credit facility agreement contains certain restrictive covenants applicable to the company, which are customary for facilities of this nature. In connection with the credit facility, WaferGen also issued Oxford warrants to purchase 95,368 shares of common stock at an exercise price of $1.47 per share.
WaferGen describes the SmartChip as a next-generation Real-Time PCR system for discovery and validation of biomarkers, or gene expression patterns, on a single platform. The company believes that the SmartChip system is ideal for researchers seeking to confirm discoveries made with the growing use of next-generation sequencing.