Venaxis Prices Public Offering Of 8.34 Mln Shares At $2.40/shr - Quick Facts

(RTTNews) - Venaxis Inc. (APPY) announced the pricing of an underwritten public offering of 8.335 million shares of its common stock at a price to the public of $2.40 per share.

In addition, Venaxis has granted the underwriters a 30-day option to purchase up to an additional 1.25 million shares of common stock solely to cover over-allotments, if any. The offering is expected to close on or about April 8, 2014, subject to customary closing conditions.

The net proceeds from the sale of the shares of common stock, after deducting the underwriting discount and the other offering expenses, are expected to be about $18.4 million.

The company noted that it plans to use the net proceeds from the offering together with the Company's existing cash resources, for working capital and other general corporate purposes, including overhead expenses while the Company seeks FDA clearance for APPY1, for initial commercialization activities of APPY1 in the U.S., for sales and marketing activities in the E.U. and to advance product development activities to attempt to expand and improve performance of the test.