Vermillion Closes Equity Financing - Quick Facts

(RTTNews) - Healthcare company Vermillion, Inc. (VRML) said it has closed its previously announced private placement with investors including Oracle Investment Management, Jack Schuler, Birchview Fund LLC and several Vermillion directors.

Under the terms of the private placement, Vermillion sold 6.94 million unregistered shares of its common stock at the price of $1.44 per share, the closing price quoted on Nasdaq on December 18, 2014. The investors also received unregistered warrants to purchase up to an aggregate of 4.17 million unregistered shares of Vermillion common stock at an exercise price of $2.00 per share.

The company noted that total proceeds were $10.5 million, before offering expenses.

The warrants become exercisable six months after the closing of the private placement and have a term of three years from the date of issuance. If and when the warrants are exercised, the company will realize an additional $8.3 million in proceeds, bringing the total investment to approximately $18.9 million, before transaction costs.

The proceeds will be used by the company for working capital and general corporate purposes.