WaferGen Biosystems to raise $7 million in registered direct offering

WaferGen Biosystems, Inc. (OTC Bulletin Board: WGBS), a leading developer of state-of-the-art genomic analysis systems, today announced that it has received commitments from certain investors to purchase approximately $7 million of previously unissued securities in a registered direct offering.  The investors include the Chairman and CEO, Alnoor Shivji, who has agreed to purchase $1 million of securities in the registered direct offering.  

WaferGen will issue to the investors an aggregate of approximately 5.8 million units at a price of $1.20 per unit, with each unit consisting of one share of common stock and a warrant to purchase 50% of one share of common stock exercisable at $1.55 per share.  Subject to certain ownership limitations, the warrants will be exercisable at any time on or after the closing date and will expire five years from the closing date.  

WaferGen expects to receive net proceeds of approximately $6.5 million, after deducting placement agent fees and other offering expenses, and expects to use the net proceeds for general working capital purposes, including for the commercialization of the WaferGen SmartChip Real-Time PCR System including the scale up of manufacturing capabilities to produce SmartChip instruments and chips and other general operating expenses.  The offering is expected to close on or about July 7, 2010, subject to satisfaction of customary closing conditions.  

Rodman & Renshaw, LLC, a wholly owned subsidiary of Rodman & Renshaw Capital Group, Inc. (Nasdaq: RODM), acted as the lead placement agent and Gilford Securities as the sub-agent, for the transaction.  

The common stock, warrants and the shares of common stock underlying the warrants described above are to be issued under WaferGen's shelf registration statement on Form S-3, which was previously declared effective by the Securities and Exchange Commission on June 8, 2010.  

SOURCE WaferGen Biosystems, Inc.