Business
Response Genetics Inc. Enters Into Asset Purchase Agreement With Cancer Genetics Inc.; Proposed Transaction to be Effectuated Through Voluntary Chapter 11; Business Uninterrupted
Response Genetics Inc. Enters Into Asset Purchase Agreement With Cancer Genetics Inc.; Proposed Transaction to be Effectuated Through Voluntary Chapter 11; Business Uninterrupted.
About this update from Response Genetics Inc
[{"type":"text","content":"\nLOS ANGELES, Aug. 10, 2015 (GLOBE NEWSWIRE) -- Response Genetics, Inc. (OTCQB:RGDX) (the \"Company\"), a company focused on the development and sale of molecular diagnostic tests that help determine a patient's response to cancer therapy, announced today that it has executed an asset purchase agreement (the \"Purchase Agreement\") with Cancer Genetics, Inc. (Nasdaq:CGIX), an emerging leader in DNA-based cancer diagnostics, as a \"stalking horse\" bidder to acquire substantially all of the Company's assets. To facilitate the sale, the Company filed a voluntary petition under chapter 11 of the Bankruptcy Code in the Delaware Bankruptcy Court (\"Court\") to, among other things, seek approval to implement sale and bidding procedures.\n\n\tDuring this process, the Company expects that its day-to-day operations will continue uninterrupted. To this end, the Company is seeking approval to maintain its current employee benefits and payroll programs in addition to other matters that will enable the Company to operate in the ordinary course of business.\n\n\tTo fund operations, SWK Funding, LLC has agreed to provide the Company up to $3 million in financing (the \"DIP Financing\").\n\n\tAs part of the sale process, the Cancer Genetics, Inc. stalking horse bid is subject to higher or better offers as other interested parties will have an opportunity to submit competing bids. The final highest or best bid will then require Court approval. The Company anticipates the sale will be completed within 60 days.\n\n\t\"We took this action today with the goal of securing Response Genetics' future,\" said Thomas Bologna, Response Genetics CEO. \"The Company has implemented various strategic initiatives and considered numerous options. We believe that this process is the best and most efficient course of action to serve our customers.\"\n\n\tPachulski, Stang, Zeihl & Jones LLP is serving as the Company's legal advisor, Conway MacKenzie is serving as the Company's restructuring advisor, and Canaccord Genuity, Inc. is the Company's investment banker.\n\n\tFor access to Court documents and other general information about the Company's chapter 11 case, please visit: www.omnimgt.com/responsegenetics.\n\n\tAbout Response Genetics:\n\n\tResponse Genetics, Inc. (the \"Company\") is a CLIA-certified clinical laboratory focused on the development and ...