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GEN News Highlights : Jan 14, 2010

Rosetta Genomics to Receive $4.5M in a Registered Direct Offering

Maker of miRNA-based diagnostics will use the money to solidify business.

Rosetta Genomics received commitments from certain institutional investors to purchase approximately $5.1 million of securities in a registered direct offering. Rosetta expects to receive net proceeds of approximately $4.5 million after deducting placement agent fees and other offering expenses.

Proceeds from the transaction will be used for general corporate purposes including repayment or refinancing of existing indebtedness or other corporate borrowings, working capital, intellectual property protection and enforcement, capital expenditures, investments, acquisitions or collaborations, R&D, and product development.

Rosetta Genomics designs miRNA-based molecular diagnostics. Founded in 2000, the company’s research platform combining bioinformatics and laboratory processes has led to the discovery of hundreds of human miRNAs. The company’s first three miRNA-based tests, miRview™ squamous, miRview™ mets, and miRview™ meso, are commercially available through its Philadelphia-based CLIA-certified lab.

Rosetta entered into securities purchase agreements with the current set of investors pursuant to which it has agreed to sell an aggregate of 2,530,000 of its ordinary shares and warrants to purchase up to 1,265,000 additional ordinary shares. Each unit, consisting of one ordinary share and a warrant to purchase 0.50 of an ordinary share, will be sold for a purchase price of $2.00.

The warrants to purchase additional shares will be exercisable at an exercise price of $2.50 per share beginning immediately after issuance and will expire five years from the date they are first exercisable.