Nanosphere, Inc. (NASDAQ:NSPH), a company enhancing medicine through targeted molecular diagnostics, today announced today that it has entered into a definitive agreement with a dedicated healthcare institutional investor in a registered direct offering for $4.4 million of convertible preferred stock (which are convertible into a total of 1,203,830 shares of common stock at a conversion price of $3.655) and warrants to purchase shares of common stock exercisable for up to 1,203,830 additional shares of common stock, in the aggregate. The warrants have an exercise price of $3.54 per share and are exercisable for 5 years commencing six months from the closing date. The preferred stock is perpetual and does not have a required dividend right or voting rights and has a liquidation preference of $0.01 per share. The preferred stock has a limitation on conversion into common stock to preclude the holder from acquiring beneficial ownership of more than 4.99% of our outstanding common stock, which may be increased to 9.99% in certain circumstances.
Net proceeds from the sale of the shares of convertible preferred stock and warrants after placement agent fees and other offering expenses are expected to be approximately $4.0 million. The Company intends to use the proceeds of the offering for general corporate purposes and working capital.
The closing of the offering is expected to take place on or about June 11, 2015, subject to the satisfaction of customary closing conditions. (Original Source)
Shares of Nanosphere closed today at $3.63, up $0.10 or 2.83%. NSPH has a 1-year high of $35.60 and a 1-year low of $3.20. The stock’s 50-day moving average is $3.79 and its 200-day moving average is $5.49.
On the ratings front, Nanosphere has been the subject of a number of recent research reports. In a report issued on May 13, Canaccord Genuity analyst Mark Massaro reiterated a Buy rating on NSPH, with a price target of $5, which implies an upside of 39.7% from current levels. Separately, on the same day, Piper Jaffray’s William Quirk maintained a Hold rating on the stock and has a price target of $3.50.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Mark Massaro and William Quirk have a total average return of -3.3% and 10.7% respectively. Massaro has a success rate of 48.5% and is ranked #3246 out of 3612 analysts, while Quirk has a success rate of 59.1% and is ranked #1104.
Nanosphere Inc develops, manufactures and markets molecular diagnostics platform, the Verigene System, which enables sensitive genomic and protein testing on a single platform.