Interpace Announces Closing of $13 Million Second Tranche Acquisition Financing from Ampersand Capital Partners
October 17 2019 - 6:55AM
Interpace Diagnostics Group, Inc. (IDXG) announced today that it
has closed on a $13 million Convertible Preferred Stock investment
by Ampersand Capital Partners (Ampersand). This investment
constitutes the second tranche of the overall $27 million
Convertible Preferred Stock financing provided by Ampersand to
Interpace in connection with the Company’s July 15, 2019
acquisition of the BioPharma Business of Cancer Genetics, Inc.
(CGIX). The condition surrounding the second tranche financing was
approved by Interpace shareholders which was obtained at the Annual
Shareholder Meeting on October 10, 2019. Approximately
$6 million of the second tranche financing is
being used to pay down a note due to Cancer
Genetics, subject to related contractual adjustments, in connection
with the acquisition.
“We are excited to strengthen our partnership
with Ampersand and to reinforce it through overwhelming support
from our shareholders as we received approval for the second
tranche financing”, stated Jack Stover, President & CEO of
Interpace. He continued, “Ampersand is considered one of the
leading private equity firms in the laboratory services space and
the addition of the biopharma asset propels Interpace to the next
level.”
About Interpace
Interpace is a leader in enabling personalized
medicine, offering specialized services along the therapeutic value
chain from early diagnosis and prognostic planning to targeted
therapeutic applications.
Interpace’s Diagnostic Business is a fully
integrated commercial and bioinformatics business unit that
provides clinically useful molecular diagnostic tests,
bioinformatics and pathology services for evaluating risk of cancer
by leveraging the latest technology in personalized medicine for
improved patient diagnosis and management. Interpace has four
commercialized molecular tests and one test in a clinical
evaluation process (CEP): PancraGEN® for the diagnosis and
prognosis of pancreatic cancer from pancreatic cysts; ThyGeNEXT®
for the diagnosis of thyroid cancer from thyroid nodules utilizing
a next generation sequencing assay; ThyraMIR® for the diagnosis of
thyroid cancer from thyroid nodules utilizing a proprietary gene
expression assay; and RespriDX® that differentiates lung cancer of
primary vs. metastatic origin. In addition, BarreGEN® for
Barrett’s Esophagus, is currently in a clinical evaluation program
whereby we gather information from physicians using
BarreGEN® to assist us in positioning the product for full
launch, partnering and potentially supporting reimbursement with
payers.
Interpace’s Biopharma Business provides
pharmacogenomics testing, genotyping, biorepository and other
customized services to the pharmaceutical and biotech industries.
The Biopharma Business also advances personalized medicine by
partnering with pharmaceutical, academic, and technology leaders to
effectively integrate pharmacogenomics into their drug development
and clinical trial programs with the goals of delivering safer,
more effective drugs to market more quickly, and improving patient
care.
For more information, please visit Interpace’s
website at www.interpacediagnostics.com.
About Ampersand Capital Partners
Founded in 1988, Ampersand is a middle market
private equity firm dedicated to growth-oriented investments in the
healthcare sector. With offices in Boston, MA and Amsterdam,
Netherlands, Ampersand leverages a unique blend of private equity
and operating experience to build value and drive superior
long-term performance alongside its portfolio company management
teams. Ampersand has helped build numerous market-leading companies
across each of its core healthcare sectors, including Avista Pharma
Solutions, Brammer Bio, Confluent Medical, Genewiz, Genoptix,
Talecris Biotherapeutics, and Viracor-IBT Laboratories. Additional
information about Ampersand is available
at www.ampersandcapital.com.
Forward-looking Statements
This press release contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, Section 21E of the Securities Exchange Act of 1934 and the
Private Securities Litigation Reform Act of 1995, relating to the
Company's future financial and operating performance. The Company
has attempted to identify forward looking statements by terminology
including "believes," "estimates," "anticipates," "expects,"
"plans," "projects," "intends," "potential," "may," "could,"
"might," "will," "should," "approximately" or other words that
convey uncertainty of future events or outcomes to identify these
forward-looking statements. These statements are based on current
expectations, assumptions and uncertainties involving judgments
about, among other things, future economic, competitive and market
conditions and future business decisions, all of which are
difficult or impossible to predict accurately and many of which are
beyond the Company's control. These statements also involve known
and unknown risks, uncertainties and other factors that may cause
the Company's actual results to be materially different from those
expressed or implied by any forward-looking statement. Known and
unknown risks, uncertainties and other factors include, but are not
limited to the fact that there is no assurance the acquisition of
the BioPharma business of Cancer Genetics, Inc. will be
successfully integrated with the Company, or that the potential
benefits of the acquisition, including future revenues, will be
successfully realized. Additionally, all forward-looking statements
are subject to the “Risk Factors” detailed from time to time in the
Company's most recent Annual Report on Form 10-K, Current Reports
on Form 8-K and Quarterly Reports on Form 10-Q. Because of these
and other risks, uncertainties and assumptions, undue reliance
should not be placed on these forward-looking statements. In
addition, these statements speak only as of the date of this press
release and, except as may be required by law, the Company
undertakes no obligation to revise or update publicly any
forward-looking statements for any reason.
Contacts: Investor Relations Edison Group
Joseph Green (646) 653-7030 jgreen@edisongroup.com
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