SAN DIEGO - Bionano Genomics, Inc. (NASDAQ:BNGO), a genome analysis solutions provider, has announced a registered direct offering resulting in the sale of over 17 million shares at $0.571 each, with an expected gross proceed of approximately $10 million. This transaction, priced at the market under Nasdaq rules, is anticipated to close around July 8, 2024, subject to customary closing conditions.
In conjunction with the direct offering, Bionano Genomics is also conducting a private placement of clinical milestone-linked Series A and B warrants, which could potentially bring in an additional $20 million if fully exercised. These warrants are exercisable upon shareholder approval and are linked to specific clinical milestones, including regulatory advancements and coverage determinations for the company's optical genome mapping (OGM) solutions.
The funds raised through this offering and the potential additional proceeds from the exercise of the warrants are intended for general corporate purposes, including working capital, research and development, repayment of existing debts, and capital expenditures.
The offering and sale of the shares are being made under an effective shelf registration statement filed with the Securities and Exchange Commission (SEC) on March 10, 2023. H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.
The Series Warrants, being part of a private placement, are not registered under the Securities Act or state securities laws and are subject to restrictions on resale in the United States. The company has made it clear that there is no guarantee that the warrants will be exercised.
Bionano Genomics specializes in providing OGM solutions to help researchers and clinicians answer complex biological and medical questions. The company's products are currently for research use only and have not been approved for diagnostic procedures.
The information for this article is based on a press release statement from Bionano Genomics, Inc.
In other recent news, Bionano Genomics has been making significant strides in its operations and financials. The company has reported an 18% year-over-year increase in its first-quarter revenue, reaching $8.8 million. Additionally, Bionano Genomics has expanded its optical genome mapping systems installed base by 34% to 347 systems, alongside a substantial 58% year-over-year increase in flowcell sales.
In the field of mergers and partnerships, Bionano Genomics has announced a new software marketing agreement with Revvity, Inc. This collaboration will see the integration of Bionano's VIA software into Revvity's next-generation sequencing workflow for newborn sequencing research.
From the analyst's side, BTIG has revised its outlook on Bionano Genomics, reducing the price target to $2.00 from the previous $3.00. Despite this adjustment, the firm continues to maintain a Buy rating for the company.
In other company news, Bionano Genomics shareholders recently participated in the 2024 Annual Meeting of Stockholders. During the meeting, shareholders elected three Class III Directors and approved the compensation of the company's named executive officers.
These are recent developments that reflect Bionano Genomics' proactive approach to improving financial stability and expanding its technology.
InvestingPro Insights
In light of Bionano Genomics' recent financial announcements, insights from InvestingPro reveal a challenging situation for the company's stock. With a market capitalization of $39.45 million, Bionano Genomics is navigating through a period marked by a significant decline in its stock price, which currently hovers around $0.57, close to its 52-week low. This reflects a steep year-to-date price total return of -69.8%, underscoring the stock's struggle to regain investor confidence.
The company's financial health, as indicated by the latest metrics, shows a revenue growth of 26.93% over the last twelve months as of Q1 2024. Despite this positive aspect, the firm's operating income margin for the same period stands at -344.42%, highlighting the challenges Bionano Genomics faces in achieving profitability. The company's quick cash burn, coupled with a volatile stock price that has taken a substantial hit over the last week, month, and year, further complicates the outlook for potential investors.
InvestingPro Tips suggest that the stock is currently in oversold territory, with an RSI indicating potential investor wariness. Moreover, analysts do not anticipate Bionano Genomics will turn profitable this year, which may weigh on the stock's performance. For those considering a deeper dive into Bionano Genomics' potential, InvestingPro offers a comprehensive list of 12 additional tips at https://www.investing.com/pro/BNGO. To access these valuable insights, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
The recent capital raise through a direct offering and the issuance of milestone-linked warrants demonstrate the company's proactive approach to securing funding for its operational needs. However, investors should be mindful of the risks associated with such financial maneuvers, especially in light of the company's current financial metrics and market performance.
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