Biocept Inc (NASDAQ:BIOC) investors are having a rough morning after the cancer diagnostic test maker announced that it intends to offer and sell 9,100,000 shares of its common stock and warrants at a combined offering price of $1.10, a 5% discount to yesterday’s closing price.
The public offering would dilute shareholders’ investments, and as such Biocept shares are currently dropping nearly 22% to $0.93 in per-market trading. BIOC has a 1-year high of $2.54 and a 1-year low of $0.49. The stock’s 50-day moving average is $1.74 and its 200-day moving average is $2.30.
The warrants will have a per share exercise price of $1.10, are exercisable immediately and will expire five years from the date of issuance. The gross proceeds to Biocept from this offering are expected to be approximately $10,010,000, before deducting the underwriting discount and estimated offering expenses payable by Biocept. Biocept has granted the underwriters a 30-day option to purchase up to 1,365,000 additional shares of common stock at a purchase price of $1.0331 per share and/or additional warrants to purchase up to 1,365,000 shares of its common stock at a purchase price of $0.0009 per warrant to cover over-allotments, if any. The offering is expected to close on October 19, 2016, subject to customary closing conditions. (Original Source)
On the ratings front, Biocept has been the subject of a number of recent research reports. In a report issued on August 31, H.C. Wainwright analyst Ram Selvaraju reiterated a Buy rating on BIOC, with a price target of $2.50, which represents a potential upside of 111% from last closing price. Separately, on August 3, Feltl’s Ben Haynor downgraded the stock to Hold and has a price target of $0.80.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Ram Selvaraju and Ben Haynor have a total average return of 2.3% and -1.9% respectively. Selvaraju has a success rate of 46% and is ranked #1058 out of 4182 analysts, while Haynor has a success rate of 40% and is ranked #3142.
Biocept, Inc. is an oncology laboratory service company, which focuses on the development and marketing of novel laboratory products in the detection of rare cells to include circulating tumor cells. It develops and commercializes proprietary circulating tumor cell and circulating tumor DNA tests utilizing a standard blood sample. The company utilizes cell enrichment and extraction technology for the detection and analysis of circulating tumor DNA tests. It also offers services to other laboratory testing providers, academic institutions, research organizations, biopharmaceutical companies and clinical trial support.