Full Press Release Details
TRANSGENOMIC ANNOUNCES CONVERSION OF
SERIES A AND B PREFERRED SECURITIES AND EXTENSION OF LOAN MATURITY DATE
Capital Structure Provides Financial Flexibility for Broad Commercialization
of ICE-COLD PCR in 2016
OMAHA, Neb. (January 11, 2016) -- Transgenomic, Inc.
(NASDAQ: TBIO), a global biotechnology company advancing precision medicine through advanced diagnostic tests and clinical and
research services, today announced that it has moved to simplify and strengthen its capital structure by entering into a conversion
agreement with the holders of its outstanding Series A and Series B convertible preferred stock and by finalizing an amendment
to its Loan and Security Agreement with affiliates of Third Security, LLC that extends the maturity date until November 2017.
Transgenomic's President and Chief Executive Officer Paul
Kinnon commented, "We believe that Third Security's support evidenced by the conversion of the outstanding shares of
Series A and Series B preferred stock will help simplify our equity structure and thereby position us for the growth we anticipate
in the new year. The conversion of the preferred stock eliminates certain preferences. In 2015, we focused on building a strong
foundation to support the commercialization of our broadly-enabling ICE COLD-PCR technology, which should serve
us well in our drive to accelerate its adoption and increase its use. We believe this revised equity structure is better aligned
with our growth plans going forward."
Conversion Agreement
Under the terms of the conversion agreement, the holders of
Transgenomic's Series A and Series B convertible preferred stock elected to convert all of the outstanding preferred shares,
and all accrued and unpaid dividends on the preferred shares, into shares of Transgenomic's common stock. In connection with
the conversion, Transgenomic issued an aggregate of 6,780,179 shares of common stock to the preferred stockholders. Following this
conversion, no shares of Series A or Series B convertible preferred stock remain outstanding. Further details regarding the conversion
agreement are outlined in Transgenomic's Current Report on Form 8-K filed today with the Securities and Exchange Commission.
Amendment to Loan Agreement
Additionally, Transgenomic entered into an amendment to its
loan and security agreement with affiliates of Third Security, LLC, which, among other things, provides that the lenders will waive
specified events of default, modifies certain covenants and extends the repayment and maturity dates to November 2017.
Transgenomic, Inc. is a global
biotechnology company advancing personalized medicine in cardiology, oncology, and inherited diseases through advanced diagnostic
technologies, such as its revolutionary ICE COLD-PCR and its unique genetic tests provided through its Patient Testing
business. Transgenomic also provides specialized clinical and research services to biopharmaceutical companies developing targeted
therapies. Transgenomic's diagnostic technologies are designed to improve medical diagnoses and patient outcomes.
Forward-Looking Statements
Certain statements in this press release constitute "forward-looking
statements" of Transgenomic within the meaning of the Private Securities Litigation Reform Act of 1995, which involve known
and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results,
performance or achievements expressed or implied by such statements. Forward-looking statements include, but are not limited to,
those relating to Transgenomic's expectations with respect to the effect of the conversion of the preferred stock. The known
risks, uncertainties and other factors affecting these forward-looking statements are described from time to time in Transgenomic's
filings with the Securities and Exchange Commission, including in Transgenomic's Annual Report on Form 10-K, filed with the
Securities and Exchange Commission on April 15, 2015. Any change in such factors, risks and uncertainties may cause the actual
results, events and performance to differ materially from those referred to in such statements. Accordingly, Transgenomic claims
the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995
with respect to all statements contained in this press release. All information in this press release is as of the date of the
release and Transgenomic does not undertake any duty to update this information, including any forward-looking statements, unless
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