Biodesix Inc. (BDSX) stock rallied in the pre-market to gain a huge 11.51% on Tuesday. The stock gained after the company announced an amendment to term loan along with strengthening financial position due to equity issuance.
During the regular session, the stock fluctuated between a high of $5.76 and a low of $5.15. After closing the session with a loss of 8.78% at $5.30, the stock reversed its loss in the pre-market. Following the news, BDSX reached $5.91 at a pre-market volume of 26.68K shares.
The lung disease blood-based diagnostics service provider, Biodesix Inc. was founded in 2005. Currently, its 27.02 million outstanding shares trade at a market capitalization of $156.99 million.
What Happened?
On January 04, the company announced the completion of its recent equity sale and amendment to its term loan.
On December 30, 2021, the company had announced the sale of 3,756,994 shares of its common stock. The offering resulted in approximately $16.3 million in gross proceeds. Moreover, the net proceeds from the offering were used to fund the repayment of BDSX’s term loan.
Furthermore, on December 31, the company also entered into a Second Amendment to its $30 million 2021 Term Loan. As per the amendment, some modifications were made for financial flexibility for strategic growth.
The key terms under the amendment include:
- Integrated Diagnostics APA $4.6 million milestone payment (January 2022) consent.
- $20 million repayments in outstanding principal on December 31.
- Elimination and waiver of $600,00 prepayment fee on the above repayment.
In conclusion, BDSX’s recent equity sale and the amendment to the term loan have enhanced its balance sheet and strengthened its financial position.
BDSX’s Recent Developments
On December 08, the company announced the appointment of Dr. Jon Faiz Kayyem to its board of directors. Dr. Kayyem has vast experience of over two decades including academia, lean startups, and Fortune 500 companies. He has served as the Founder, CEO, and President of GenMark Diagnostics among many other positions. He has served with and co-founded/founded other firms as well.
Dr. Kayyem is currently serving on the board of Inhibrx as well.
BDSX’s Q3 Earnings Report
In the third quarter of 2021, the company had revenue of $6.5 million, primarily due to lung diagnostic revenue of $4.5 million.
BDSX incurred a net loss of $11.5 million in the third quarter of 2021 and ended the quarter with cash and cash equivalents of $47.9 million.
