Shares of Cancer Genetics (NASDAQ:CGIX) are gaining ground in Thursday’s pre-market session thanks to the release of amended terms for a forbearance agreement with its lenders.
According to an 8K regulatory filing with the US Securities and Exchange Commission on Wednesday, the biotech’s new loan amendment with Silicon Valley Bank alters the interest rate to WSJ Prime plus 2.25 percentage points (which means it is 6.75% as of the close of September). It also requires the biotech to comply with certain milestones in connection with a potential strategic transaction.
READ: Cancer Genetics CEO says merger with NovellusDx to speed up enrollment in cancer-focused trials
The company also amended its loan agreement with Partners for Growth, which also outlines milestones for a possible strategic transaction. That loan agreement is an interest-only term loan of $6 million, which bears interest at the rate of 11.5% per year and matures on March 22, 2020.
In response to hints that Cancer Genetics will strike a strategic transaction, investors sent Cancer Genetics shares up 38% to $0.36 before the opening bell on Thursday.
Based in Rutherford, New Jersey, Cancer Genetics offers diagnostic products and services that enable precision medicine in oncology. It boasts clinical research collaborations with key cancer centers such as Memorial Sloan Kettering, The Cleveland Clinic, Mayo Clinic, Keck School of Medicine at USC and the National Cancer Institute.
Contact Ellen Kelleher at [email protected]