Shares of Bionano Genomics (BNGO) dropped sharply in premarket trading on Wednesday, falling as much as 13.25% after the company announced a $3 million registered direct offering of its common stock and warrants.
The San Diego-based genome analysis company said it will issue 9.88 million shares of common stock priced at $0.3039 per share in the offering. It will also issue Series C warrants to purchase up to 9.88 million shares, with a 5-year term and $0.3039 exercise price, as well as short-term Series D warrants for 9.88 million shares exercisable at $0.3039 for 18 months.
While the $3 million in gross proceeds provides Bionano with additional capital for general corporate purposes, the offering represents potential dilution for existing shareholders. The warrant components add further complexity, as the company could raise up to $6 million more if the warrants are fully exercised for cash. However, no assurance is provided on if or when that may occur.
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