Health and Healthcare
Cancer Genetics to Acquire Assets of Response Genetics
Published:
Last Updated:
Response Genetics Inc. (NASDAQ: RGDX) announced Monday that it executed an asset purchase agreement with Cancer Genetics Inc. (NASDAQ: CGIX), an emerging leader in DNA-based cancer diagnostics, as a “stalking horse” bidder to potentially acquire all the company’s assets.
In an effort to facilitate the sale, Response filed a voluntary petition under chapter 11 of the Bankruptcy Code in the Delaware Bankruptcy Court to seek approval to implement sale and bidding procedures. In addition to this, SWK Funding agreed to provide Response up to $3 million in financing to help fund operations.
As part of the sale process, the Cancer Genetics stalking horse bid is subject to higher or better offers as other interested parties will have an opportunity to submit competing bids. The final highest or best bid will then require court approval. The company anticipates the sale will be completed within 60 days.
For some background: Response Genetics is a CLIA-certified clinical laboratory focused on the development and sale of molecular diagnostic testing services for cancer. Cancer Genetics is an emerging leader in DNA-based cancer diagnostics, servicing some of the most prestigious medical institutions in the world.
Thomas Bologna, CEO of Response Genetics, said:
We took this action today with the goal of securing Response Genetics’ future. The company has implemented various strategic initiatives and considered numerous options. We believe that this process is the best and most efficient course of action to serve our customers.
Shares of Cancer Genetics were up 2.2% at $8.82 on Monday afternoon. The stock has a consensus analyst price target of $14.58 and a 52-week trading range of $4.83 to $12.75.
Response shares were down 82%, at $0.02 on a 52-week trading range of $0.01 to $0.85.
ALSO READ: 6 Analyst Stock Picks Called to Rise 50% to 100%
Is Your Money Earning the Best Possible Rate? (Sponsor)
Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.
However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.
There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
