Shares of Response Genetics jumped by a third on Thursday after announcing it had raised $7.8 million in a private placement.
The Los Angeles company said it sold about 5.3 million shares to undisclosed investors at a premium price of $1.50 a share. Shares had closed at $1.18 on Wednesday.
Response Genetics is developing cancer diagnostic technology to better extract and analyze genetic information from tumors.
“One of the first things we wanted to do was to strengthen our balance sheet, which we’ve accomplished,” said Chief Executive Thomas Bologna, who was appointed to the post in December. “We plan to use the proceeds to help us move forward in strengthening and building our business.”
Shares closed up 35 cents, or 29.6 percent, to $1.53 on the Nasdaq.