NeoGenomics, Inc. announces Standby Equity Distribution Agreement for up to
$5.0 million of Equity Financing from Cornell Capital Partners, LP
Fort Myers, Florida - June 8, 2005 - NeoGenomics, Inc (OTC BB: NGNM)
announced today that it has entered into a Standby Equity Distribution Agreement
("SEDA") with Cornell Capital Partners, LP ("Cornell"). Pursuant to the SEDA,
the Company may, at its discretion, periodically sell to Cornell shares of
common stock for a total purchase price of up to $5.0 million. For each share of
common stock purchased under the SEDA, Cornell will pay the Company 98% of the
lowest volume weighted average price ("VWAP") of the Company's common stock as
quoted by Bloomberg, LP on the Over-the-Counter Bulletin Board or other
principal market on which the Company's common stock is traded for the 5 days
immediately following the notice date (the "Purchase Price"). Cornell will also
retain 5% of each advance under the SEDA. Cornell's obligation to purchase
shares of the Company's common stock under the SEDA is subject to certain
conditions, including the Company obtaining an effective registration statement
for shares of common stock sold under the SEDA and is limited to $750,000 per
weekly advance. The amount and timing of all advances under the SEDA are at the
discretion of the Company and the Company is not obligated to issue and sell any
securities to Cornell, unless and until it decides to do so.
Robert Gasparini, the President of NeoGenomics, said, "We are delighted to
have entered into this agreement. Cornell Capital has been a dominant and
driving force in the creation of this innovative financing mechanism. The
Company's primary motivation in securing this equity line was to ensure that the
Company was in a position to move quickly in the event that acquisitions or
other strategic opportunities were presented to the Company. With three of the
top ten genetics laboratories being acquired in the last 12 months, it is clear
to our Board that the industry will consolidate further, and we believe that our
shareholders will realize significant benefits if we are able to participate in
this trend toward consolidation."
Steven Jones, a Director of NeoGenomics and the Company's acting Principal
Financial Officer, said, "Under the terms of the SEDA, equity capital will be
available within five days of each advance request, which is a significant
advantage over raising equity capital through traditional private placements,
which can often take 4-6 months."
Michael Rosselli, a Director with Cornell Capital, stated, "We are very
excited to participate in the genetics and molecular biology testing industry
with NeoGenomics. We have great respect for the NeoGenomics team and we are
looking forward to assisting them in meeting their growth objectives."
About NeoGenomics, Inc.
NeoGenomics, Inc. is a clinical testing laboratory that offers genetic and
molecular diagnostic testing services to the oncology and perinatology markets.
NeoGenomics is headquartered in Fort Myers, FL and services the needs of the
medical community throughout the United States. For additional information about
NeoGenomics, please visit our website at www.neogenomics.org.
Investor Relations Contact:
NeoGenomics, Inc.
Mr. Steven Jones
(239) 598-0964
sjones@neogenomics.org
or
Mr. Robert Gasparini
(239) 768-0600
bgasparini@neogenomics.org
12701 Commonwealth Drive, Suite 9, Fort Myers, FL 33913
Certain statements included in this press release are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
Actual results could differ materially from such statements expressed or implied
herein. Factors that might cause such a difference include, among others, the
company's ability to continue gaining new customers, offer new types of tests,
and otherwise implement its business plan. As a result, this press release
should be read in conjunction with the company's periodic filings with the SEC.
NeoGenomics (NEO)
Filed: 8 Jun 05, 12:00am