Business
Precipio Enters Into an At-The -Market (ATM) Financing Arrangement
NEW HAVEN, Conn., April 05, 2021 (GLOBE NEWSWIRE) -- Specialty diagnostics company Precipio, Inc. (NASDAQ: PRPO), announces a new “At-The-Market” (ATM)
About this update from Precipio, Inc.
[{"type":"text","content":"NEW HAVEN, Conn., April 05, 2021 (GLOBE NEWSWIRE) -- Specialty diagnostics company Precipio, Inc. (NASDAQ: PRPO), announces a new “At-The-Market” (ATM) financing arrangement that improves its financing flexibility. As provided in the Company’s prospectus supplement filed on April 2, 2021, Precipio will be able to sell shares from time to time through the ATM offering, up to an aggregate of $20M. The Company anticipates that this will be its primary financing method going forward. The ATM will be managed by Alliance Global Partners, an investment bank with which Precipio has been working since 2017. This arrangement will be used in an ongoing manner to finance Precipio’s operations and provide the resources the Company needs to fuel its growth, particularly for its new HemeScreen offering for physician offices. As the Company continues to grow, having the most cost-effective, flexible financial tools at its disposal is critical to financing in the least dilutive manner. The ATM structure provides Precipio’s management with more control over the timing, pricing, and proceeds it receives from selling shares into the market. Mechanism of the ATM The ATM is structured to enable the Company to sell shares directly into the market, at its discretion. At no time are these shares held by any individual fund or single investor, nor can they be purchased by such an investor. When the Company decides to increase its cash position, it instructs the bank (AGP) to begin to sell a specified number of shares into the market at a predetermined minimum share price that is supported by the market on that day. If the market provides demand for shares at that price (or higher), the Company (via AGP) will proceed to sell those shares into individual shareholders’ hands at or above that predetermined price. If the market does not provide demand for shares at that price, the shares will remain “on the shelf” and not be sold. This control over the selling price, which impacts the proceeds to the Company and the subsequent dilution, was not available under the previous equity line. The Company can also monitor the process of the shares being sold throughout the day and the impact of that process on the share price. Because the Company provides a minimum sale price that essentially creates a “floor” for the transaction, management has more control over the...