MADISON, Wis. (AP) -- Exact Sciences Corp. said Tuesday that it expects to raise $63.7 million after expenses from a stock offering, and plans to use the proceeds to fund development and potential commercialization of its Cologuard colon cancer test.
Exact Sciences said it will sell 5.5 million shares for $12.35 per share, a 1.9 percent discount to its closing price on Monday. The company said the offering should close on Friday.
The underwriters of the offering will have an option to buy another 825,000 shares over the next 30 days to cover any over allotments.
Shares of Exact Sciences rose 25 cents, or almost 2 percent, to $12.84 in midday trading. It shares have traded between $6.93 and $14.42 in the last year.
The company said it will use the proceeds of the sale for product development, to further its efforts to get marketing approval for Cologuard and to support commercialization if the test is approved, and for other general corporate and working capital purposes.
The Cologuard uses DNA technology to find possible signs of cancer and pre-cancer in a person's stool. It could indicate that more sophisticated follow-up diagnostic testing is needed and might make it easier to catch cancer in earlier, more treatable stages. In mid-April the company reported results from a clinical trial of Cologuard that investors found disappointing, and over the next few days its shares fell 18 percent.
However Exact Sciences stock has rebounded 55 percent since then. On June 10 the company said it completed its premarket application for the device, meaning it will be able to market the test if it gets clearance from the Food and Drug Administration.
The company had 64.1 million shares on the market as of April 30.