• Aug. 10, 2015, 10:13 AM
    • Cancer Genetics (CGIX +5.2%) enters into an agreement in principle to act as a "stalking horse" and acquire all the assets and operations of Response Genetics (RGDX -48.7%) for $14M, $7M in cash and $7M in CGIX stock.
    • The deal will add $10M - 12M in revenue to CGI's top line over the next 12 months and more than double its clinical revenue base. As part of the transaction, Response has filed a voluntary petition under Chapter 11 of the Bankruptcy Code in the Delaware Bankruptcy Court.
    • A "stalking horse" bid under the U.S. Bankruptcy Code means other parties have the opportunity to submit competing offers. CGIX is entitled to a break-up fee and expense reimbursement if it does not prevail in its bid. The acquisition agreement in principle remains subject to finalization within seven days of Response's Chapter 11 filing.
    Aug. 10, 2015, 10:13 AM | 1 Comment