Progenity (PROG) Prices 7.645M Share Common Offering at $3.27/Sh

Progenity, Inc. (NASDAQ: PROG) today announced the pricing of its previously announced underwritten public offering of 7,645,259 shares of its common stock at a public offering price of $3.27 per share. The gross proceeds of the offering, before deducting underwriting discounts and commissions and other offering expenses payable by Progenity, are expected to be approximately $25.0 million. All of the shares are being offered by Progenity. Progenity has granted the underwriters a 30-day option to purchase up to an additional 1,146,788 shares of common stock at the public offering price, less underwriting discounts and commissions. The offering is expected to close on December 7, 2020, subject to the satisfaction of customary closing conditions. Progenity expects to use the net proceeds from the offering to support its operations, to invest in its molecular testing research and development program, to invest in research and development with respect to its precision medicine platform and for working capital and general corporate purposes.

In a separate press release, Progenity also announced today the pricing of its previously announced private offering of $75,000,000 aggregate principal amount of 7.25% convertible senior notes due 2025 (the “notes”), plus up to an additional $15,000,000 aggregate principal amount of notes that the initial purchaser of the notes has the option to purchase from Progenity. The issuance and sale of the notes are scheduled to settle on December 7, 2020, subject to customary closing conditions. The completion of the offering of common stock is not contingent on the completion of the offering of the notes, and the completion of the offering of notes is not contingent on the completion of offering of common stock. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any notes or any shares of common stock issuable upon conversion of the notes.

Piper Sandler & Co. and Wells Fargo Securities, LLC are acting as joint book-running managers for the offering of common stock. BTIG, LLC is acting as the lead manager for the offering of common stock.

A registration statement relating to the offering of common stock became effective on December 2, 2020.

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