IRVINE, Calif., April 7, 2011 (GLOBE NEWSWIRE) -- CombiMatrix Corporation (Nasdaq:CBMX - News), a molecular diagnostics laboratory offering genetic array testing, a comprehensive profiling of chromosomes and genes used to classify and assist in the treatment of cancer and developmental disorders, announced today that it has closed its private placement, in which it sold $6.7 million of newly issued shares of its common stock and warrants. These securities were sold to accredited investors including HLM Venture Partners, members of the executive team, members of the Board of Directors and other qualified investors.
HLM partner, Marty Felsenthal, who today joined CombiMatrix’s Board of Directors, said, “There is a growing body of evidence that indicates the importance of genetic array testing in both developmental medicine and oncology. Those factors include a series of confirmatory studies, changing guidelines for both prenatal and pediatric testing and the keen interest of top commercial laboratories in partnering or otherwise accessing the technology for personalized genetic diagnostics. We are delighted to be partnering with CombiMatrix as they work toward capitalizing on this significant opportunity,” concluded Mr. Felsenthal.
CombiMatrix President and CEO R. Judd Jessup, who also participated in the financing, said, “There was interest in the financing from both internal and external parties and we are looking forward to proceeding with executing our business plan, which is now supported by a stronger balance sheet. We believe this investment by HLM Venture Partners and others is a significant endorsement of the growing importance of array-based molecular diagnostics. HLM is an experienced and respected health care investor and an ideal partner for us as we continue to build our company and our industry segment. We believe this financing will enable us to continue to expand our leading portfolio of array-based tests, add to our sales and marketing organization and secure the financial resources necessary to execute on our plan,” concluded Mr. Jessup.
Mark McGowan, Chairman of the CombiMatrix Board of Directors and Managing Partner at SAF Capital Management, said, “We believe this parallel capital investment by current shareholders, executives and board members alike is indicative of the ownership-oriented mentality we have cultivated at CombiMatrix. In our view, the participation of an esteemed institution such as HLM Venture Partners and the at-market pricing of the financing speak to the strength of our new commercial strategy and leadership team. With this key financing in place, we look forward to the continuation of our plans for expansion in both the oncological and developmental markets,” concluded Mr. McGowan.
About HLM Venture Partners
HLM Venture Partners (“HLM”) is a leading venture capital firm providing capital to emerging companies focused on health care service, health care information technology and medical devices. HLM has over $400 million of venture capital under management and works with the leading growth companies that are improving the quality of health care while reducing overall costs. HLM supports entrepreneurs as they turn innovative ideas into market-leading businesses, offering guidance on financial structuring, resource allocation and deployment, strategic planning, strategic introductions, and recruitment. HLM has offices in Boston, Massachusetts, and San Francisco, California. (www.hlmventurepartners.com)
About CombiMatrix Corporation
CombiMatrix Corporation, through its wholly owned subsidiary, CombiMatrix Diagnostics, is a CAP/CLIA certified molecular diagnostics laboratory offering comprehensive profiling of chromosomes and genes for both oncology and pre- and postnatal developmental disorders. CombiMatrix Diagnostics offers a comprehensive and proprietary analysis of cancer tumors at the DNA, or molecular level. CombiMatrix was the first commercial clinical laboratory in the United States to make comprehensive DNA-based genomic analysis of solid tumors, including breast, colon, lung, prostate and brain tumors, available to oncology patients and medical professionals. CombiMatrix also offers pre- and postnatal testing services for the detection of abnormalities of genes at the DNA level beyond what can be identified through traditional technologies such as ultrasound examinations and amniocentesis. Additional information about CombiMatrix Corporation is available at www.combimatrix.com. Additional information about CMDX is available at www.cmdiagnostics.com or by calling 1-800-710-0624.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon our current expectations, speak only as of the date hereof and are subject to change. All statements, other than statements of historical fact included in this press release, are forward-looking statements. Forward-looking statements can often be identified by words such as “anticipates,” “expects,” “intends,” “plans,” “predicts,” “believes,” “seeks,” “estimates,” “may,” “will,” “should,” “would,” “could,” “aim,” “prepare,” “working towards,” “proceed,” “help,” “potential,” “continue,” “ongoing,” similar expressions, and variations or negatives of these words and include, but are not limited to, statements regarding efforts to capitalize on genetic array testing in both developmental medicine and oncology; executing our business plan; the growing importance of array-based molecular diagnostics; building the Company and its industry segment; the ability to expand our leading portfolio of array-based tests, add to our sales and marketing organization and secure the financial resources necessary to execute on our plan; the strength of our new commercial strategy and leadership team; and plans for expansion in both the oncological and developmental markets. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement. The risks and uncertainties referred to above include, but are not limited to, the ability to execute on our business plans; the ability to use the proceeds of the financing to capitalize on genetic array testing in both developmental medicine and oncology; the growth of our industry segment; the success of our efforts to expand our leading portfolio of array-based tests, add to our sales and marketing organization and secure the financial resources necessary to execute on our plan; the degree to which our tests are clinically accepted and commercially adopted; the recent economic slowdown affecting technology companies; rapid technological change in our markets; changes in demand for our future products; legislative, regulatory and competitive developments; general economic conditions; and various other factors. Further information on potential factors that could affect our financial results is included in our Annual Report on Form 10-K, Quarterly Reports of Form 10-Q, and in other filings with the Securities and Exchange Commission. We undertake no obligation to revise or update publicly any forward-looking statements for any reason, except as required by law.
Contact:
Company Contact: R. Judd Jessup President & CEO, CombiMatrix Corporation Tel (949) 753-0624 Investor Relations Contact: Matthew H. Clawson Allen & Caron, Inc. Tel (949) 474-4300 matt@allencaron.com
