Item
5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements
of Certain Officers.
On
November 16, 2018, the Company and Mr. Miles entered into an offer letter with respect to Mr. Miles’ appointment as Chief
Financial Officer of the Company effective November 26, 2018 (the “Offer Letter”). The Offer Letter provides for,
among other things, (i) an annual base salary of $300,000 and (ii) eligibility for an annual cash bonus of up to 30% of his base
salary. Pursuant to the terms of the Offer Letter and subject to continued employment, the Company will grant to Mr. Miles an
option to purchase 100,000 shares of the Company’s common stock. The Offer Letter has an initial one year term and automatically
renews for additional one-year terms.
The
description of the Offer Letter is not complete and is qualified in its entirety by reference to the full text thereof, which
is filed as an exhibit to this Form 8-K and incorporated by reference herein.
The
Company will also enter into an indemnification agreement with Mr. Miles (the “Indemnification Agreement”), in the
Company’s standard form which has been previously entered into by the Company with each of the Company’s directors
and executive officers, the form of which was filed as Exhibit 10.7 to the Company’s Registration Statement on Form S-1
filed with the Securities and Exchange Commission on December 30, 2011.
Forward-Looking
Statements
This
report contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements typically
are identified by use of terms such as “may,” “will,” “should,” “plan,” “expect,”
“anticipate,” “estimate” and similar words, and the opposites of such words, although some forward-looking
statements are expressed differently. Forward-looking statements involve known and unknown risks and uncertainties that exist
in the Registrant’s operations and business environment, which may be beyond the Registrant’s control, and which may
cause actual results, performance or achievements to be materially different from future results, performance or achievements
expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements
that could be forward- looking statements. For example, forward-looking statements include, without limitation: statements regarding
prospects for additional customers; market forecasts; projections of earnings, revenues, synergies, accretion or other financial
information; and plans, strategies and objectives of management for future operations. The risks and uncertainties referred to
above include, but are not limited to, risks detailed from time to time in the Registrant’s filings with the Securities
and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2017 and Quarterly Reports on
Form 10-Q for the quarters ended March 31, 2018, June 30, 2018 and September 30, 2018. These risks could cause actual results
to differ materially from those expressed in any forward- looking statements made by, or on behalf of, the Registrant. Forward-looking
statements represent the judgment of management of the Registrant regarding future events. Although the Registrant believes that
the expectations reflected in such forward-looking statements are reasonable at the time that they are made, the Registrant can
give no assurance that such expectations will prove to be correct. Unless otherwise required by applicable law, the Registrant
assumes no obligation to update any forward-looking statements, and expressly disclaims any obligation to do so, whether as a
result of new information, future events or otherwise.
Additional
Information and Where to Find It
In
connection with the proposed transaction pursuant to the terms of the Agreement and Plan of Merger and Reorganization, dated as
of September 18, 2018, by and among Cancer Genetics, Inc., Wogolos, Ltd.. and NovellusDx , Ltd., Cancer Genetics intends to file
relevant materials with the Securities and Exchange Commission, or the SEC, including a registration statement that will contain
a proxy statement and prospectus. Investors and shareholders will be able to obtain free copies of the proxy statement, prospectus
and other documents filed by Cancer Genetics with the SEC (when they become available) through the website maintained by the SEC
at
www.sec.gov
. In addition, Cancer Genetics and NovellusDx investors and shareholders will be able to obtain free copies
of the proxy statement, prospectus and other documents filed by Cancer Genetics with the SEC by contacting Cancer Genetics, Inc.,
201 Route 17 North, 2
nd
Floor, Rutherford, New Jersey 07070, Attention: Corporate Secretary. Investors and stockholders
are urged to read the proxy statement, prospectus and the other relevant materials when they become available before making any
voting or investment decision with respect to the merger.
Participants
in the Solicitation
Cancer
Genetics and NovellusDx, and each of their respective directors and executive officers and certain of their other members of management
and employees, may be deemed to be participants in the solicitation of proxies in connection with the merger. Information about
Cancer Genetics’ directors and executive officers is included in Cancer Genetics’ Annual Report on Form 10-K for the
year ended December 31, 2017, filed with the SEC on April 2, 2018, and the Form 10-K/A filed with the SEC on April 30, 2018. Additional
information regarding these persons and their interests in the merger will be included in the proxy statement relating to the
merger when it is filed with the SEC. These documents can be obtained free of charge from the sources indicated above. This communication
is not intended to and does not constitute the solicitation of any vote in any jurisdiction pursuant to the merger or otherwise,
nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law.