Progenity Strengthens its Liquidity Position
November 23, 2021
Company received more than $44 million in warrant exercises since August 2021.
Current liquidity position provides runway to achieve critical research and development milestones through 2022.
SAN DIEGO, Nov. 23, 2021 (GLOBE NEWSWIRE) -- Progenity, Inc. (Nasdaq: PROG), a biotechnology company innovating in the fields of gastrointestinal health and oral biotherapeutics, today provided an update on its strengthened liquidity position.
“Over the last several months, we made great strides in optimizing our capital structure and bolstering our liquidity position,” said Eric d’Esparbes, Chief Financial Officer of Progenity. “As a result of previously issued warrants being exercised and other capital-raising transactions, we believe our liquidity position provides sufficient runway to support achievement of our critical R&D milestones for at least the next twelve months.”
The company reported approximately $44 million in warrant exercises to date during the fourth quarter of 2021. In addition, through an exchange transaction in the fourth quarter of 2021, the company reduced by 38% the principal amount of its convertible senior notes due 2025 held by non-affiliates, with the majority of the remaining balance held by an affiliated holder, Athyrium Capital Management, LP.
“In a very short period of time, we’ve simplified our operations and focused our capital allocation to transform Progenity into a biotherapeutics company,” said Adi Mohanty, Chief Executive Officer of Progenity. “We expect further improvement in operating expenditures as we continue to execute our transformation and focus on expediting development of our gastrointestinal health and oral biotherapeutics programs.”
Progenity, Inc. is a biotechnology company innovating in the fields of women's health, gastrointestinal health and oral biotherapeutics. Progenity applies a multi-omics approach, combining genomics, epigenomics, proteomics, and metabolomics to its molecular testing products and to the development of a suite of investigational ingestible devices designed to provide precise diagnostic sampling and drug delivery solutions. Progenity’s vision is to transform healthcare to become more precise and personal by improving diagnoses of disease and improving patient outcomes through localized treatment with targeted therapies.
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Managing Director, Westwicke ICR