Around the State – Central JerseyPRINCETON Identity-testing service company Orchid Cellmark plans to raise approximately $14 million though a private placement. Company officials say they have entered a definitive agreement with a group of existing and new private institutional investors to raise the cash through common stock equity financing. Officials say the funds will be used for working capital and general corporate purposes.
Launched in 1985, Orchid provides DNA-testing services for forensic, paternity, immigration, adoption, estate and security applications. The financing will consist of roughly 4.87 million shares of common stock to be issued at $2.88 per share. For its third quarter, Orchid Cellmark reported a net loss of $1.5 million on total revenues of $15.7 million compared with a net loss of $3.8 million on revenue of $16.4 million for the same period last year.