SAN DIEGO, April 6 /PRNewswire-FirstCall/ -- Sequenom, Inc. announced today that its financial statements filed with the Securities and Exchange Commission on March 31, 2006 contained a going concern qualification from its independent registered public accounting firm relating to the Company’s financial statements for the year ended December 31, 2005. This announcement is in compliance with Nasdaq Rule 4350(b) requiring separate disclosure of receipt of an audit opinion that contains a going concern qualification, and does not reflect any change or amendment to the December 31, 2005 financial statements.
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The Company’s independent registered public accounting firm, Ernst & Young LLP, issued the going concern qualification on the financial statements of the Company for the 2005 results reported on March 31, 2006 and was based on significant operating losses reported and insufficient cash and investments to fund operations past the second quarter of 2006.
The Company recently announced commitments by ComVest Investment Partners II LLC, Pequot Private Equity Fund IV, L.P., LB I Group, Inc. (an affiliate of Lehman Brothers), and Siemens Venture Capital GmbH for a $33 million private placement of common stock and warrants to purchase common stock, subject to shareholder approval and other closing conditions.
About Sequenom
Sequenom is committed to providing the best genetic analysis products that translate genomic science into superior solutions for non-invasive prenatal testing, biomedical research, molecular medicine and agricultural applications. The Company’s proprietary MassARRAY system is a high-performance DNA analysis platform that efficiently and precisely measures the amount of genetic target material and variations therein. The system is able to deliver reliable and specific data from complex biological samples and from genetic target material that is only available in trace amounts. The Company has exclusively licensed intellectual property rights for the development and commercialization of non-invasive prenatal genetic tests for use with the MassARRAY system and other platforms.
Sequenom(R) and MassARRAY(R) are trademarks of Sequenom, Inc.
Except for the historical information contained herein, the matters set forth in this press release regarding the private placement of common stock, shareholder approval, and closing conditions are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the risks and uncertainties associated with the Company’s ability to complete the transaction described, including the risk that the stockholders fail to approve the transaction or the increase in authorized shares of common stock of the Company and the risk that the Company fails to satisfy any or all of the closing conditions, as well as other risks described from time to time in Sequenom’s SEC filings, including Sequenom’s most recent Annual Report on Form 10-K, and its subsequent filings. These forward-looking statements are based on current information that is likely to change. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and Sequenom undertakes no obligation to revise or update any forward-looking statement to reflect events or circumstances after the issuance of this press release.
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CONTACT: John Sharp, Principal Financial Officer of Sequenom, Inc.,+1-858-202-9032, jsharp@sequenom.com
