Vermillion to raise $20.5M in private placement

US diagnostics firm Vermillion, formerly Ciphergen Biosystems, has entered into securities purchase agreements in connection with a private placement with a group of existing and new investors. Under the terms of the deal, Vermillion will receive approximately $20.5 million in gross proceeds from the sale of 24.4 million shares of its common stock and the issuance of warrants to buy out 19.5 million additional shares with an exercise price of $0.925 each.

Subject to the satisfaction of customary closing conditions, the transaction is expected to complete on or about August 29, and net proceeds will be used for general working capital needs.

Earlier this week, the company changed its name to Vermillion and began trading on August 27 under a new Nasdaq stock symbol: VRML.