Znomics plans $8 million private placement of convertible preferreds

By Devika Patel

Knoxville, Tenn., Feb. 25 - Znomics, Inc. negotiated an $8 million private placement of 8% convertible preferred stock with FirstPoint Biotech, Inc. on Feb. 24, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

The company will sell $4 million of preferreds to FirstPoint in an initial tranche. The investor has committed to buy another $4 million of preferreds in a second tranche after the company achieves certain milestones.

The price per share will be determined by an independent appraiser.

Znomics intends to use the proceeds to expand its medicinal chemistry program and to complete the validation of its zebrafish technology for drug discovery with a view towards developing one or more partnerships with a pharmaceutical company. The company expects the proceeds of the financing to fund its business plan for two years.

Znomics is a biotechnology company based in Portland, Ore.

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