Interpace Diagnostics Group Inc (NASDAQ:IDXG) investors are heading back from the hills, after the company announced that it has converted all of the Company’s remaining long-term secured outstanding debt into Common Stock and no longer has any secured debt outstanding.
Interpace Diagnostics shares reacted to the news, rising nearly 11% to $2.80 in pre-market trading Thursday.
On March 23, 2017 the Company announced that its outstanding secured debt arising from the acquisition of RedPath Integrated Pathology, Inc. in 2014, amounting to $9.34 million was acquired for $8.9 million (95% of face value) by an institutional investor in a debt exchange for a $5.3 million secured convertible note and a $3.5 million secured note issued by the Company. On April 18, 2017 the institutional investor exchanged the $3.5 million secured note for a $3.5 million secured convertible note issued by the Company. The institutional investor has fully converted the notes into shares of the Company’s common stock. The security interest has been terminated and the liens will be released upon proper termination filings.
Interpace Diagnostics’ President & CEO Jack Stover commented, “We are pleased to announce that we have achieved this significant milestone in our debt restructuring plan and are now debt free with respect to any secured loans. We would like to thank our investors for their continuing support and confidence. We believe that it is a “new day” for Interpace and we look forward to executing on our strategic plans.”
Interpace Diagnostics Group, Inc. provides commercialization services to biopharmaceutical companies. It focuses on developing and commercializing molecular diagnostic tests, leveraging the latest technology and personalized medicine for patient diagnosis and management. The company offers commercialized molecular tests which include PancraGen, ThyGenX, and ThyraMIR. PancraGen for the diagnosis and prognosis of pancreatic cancer from pancreatic cysts; ThyGenX, for the diagnosis of thyroid cancer from thyroid nodules utilizing a next generation sequencing assay and ThyraMIR, for the diagnosis of thyroid cancer from thyroid nodules utilizing a proprietary gene expression assay.