As filed with the Securities and Exchange Commission on January 8, 2004July 18, 2006
Commission File No.: 333-111442333-
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Amendment No. 1
FORM S-3
TOREGISTRATION STATEMENT
FORM S-3
UNDER
REGISTRATION STATEMENTUNDER
THE SECURITIES ACT OF 1933
TRANSGENOMIC, INC.
(Exact Name of Registrant As Specified In Its Charter)
| Delaware | 91-1789357 | |
| (State of Incorporation) | (IRS Employer I.D. Number) | |
12325 Emmet Street Omaha, Nebraska 68164 (402) 452-5400
(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)
Michael A. Summers
Chief Financial Officer
12325 Emmet Street Omaha, Nebraska 68164 (402) 452-5400
(Name, address and telephone number of Agent for Service)
Copies to:
Steven P. Amen
Kutak Rock LLP
1650 Farnam Street
Omaha, Nebraska 68102
Tel: (402) 346-6000
Fax: (402) 346-1148
APPROXIMATE DATE OF COMMENCEMENT OF PROPOSED SALE TO THE PUBLIC:
From time to time after the effective date of this Registration Statement
as determined by market conditions.
If the only securities being registered on this Form are being offered pursuant to dividend or interest reinvestment plans, please check the following box. o¨
If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, other than securities offered only in connection with dividend or interest reinvestment plans, check the following box. ýx
If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. o¨
If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. o¨
If delivery of the prospectus is expected to be made pursuant to Rule 434, please check the following box. o¨
CALCULATION OF REGISTRATION FEE
| Title of each class of securities to be Registered | Amount to be registered | Proposed maximum offering price per unit(1) | Proposed Maximum Aggregate Offering Price | Amount of Registration Fee | ||||
Common Stock, par value $0.01 | 24,090,795(2) | $0.47 | $11,322,674 | $1,212 | ||||
| (1) | Calculated pursuant to Rule 457(c) based on the average of the high and low sale price of the shares reported on the Nasdaq Stock Market on July 12, 2006. |
| (2) | Consists of 16,028,218 shares currently outstanding and 8,062,577 shares issuable upon exercise of warrants. |
WeThe Registrant hereby amendamends this Registration Statement on such date or dates as may be necessary to delay its effective date until we filethe Registrant files a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until this Registration Statement shall become effective on such date as the Commission, acting according to Section 8(a), may determine.
SUBJECT TO COMPLETION, DATED JANUARY 8, 2004
PRELIMINARY PROSPECTUS
The information in this prospectus is not complete and may be changed. These securities may not be sold until the registration statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and is not seeking an offer to buy these securities in any state where the offer or sale is not permitted. these securities and is not seeking an offer
Subject to buy these securities in any state where the offer or sale is not permitted.Completion, dated July 18, 2006
1,505,009PRELIMINARY PROSPECTUS
24,090,795 Shares
TRANSGENOMIC, INC.
COMMON STOCK
This Prospectusprospectus covers 1,505,00924,090,795 shares ("Shares"(“Shares”) of our common stock that may be sold by the selling stockholders listed under “Selling Stockholders” may sell from time to time. These Shares consist of:
The selling stockholders may sell the shares at the then prevailing market price for the shares at the time of the sale, or at other prices. The last reported sale price for our common stock on January 6, 2004July 12, 2006 was $2.17$0.45 per share. The selling stockholders are offering the Shares as described under “Plan of Distribution.” We will not receive any of the proceeds from the sale of these shares by these stockholders.the selling stockholders, but will be entitled to the proceeds from the exercise of outstanding warrants.
Our common stock is listed on the Nasdaq National Market under the symbol "TBIO."“TBIO.”
The selling stockholders are offering the common stock as described under "Plan of Distribution."
Investing in our common stock involves a high degree of risk. You should carefully consider the information under the heading "Risk Factors"“Risk Factors” beginning on page 67 of this Prospectus before buying shares of our common stock.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed upon the adequacy or accuracy of this prospectus. Any representation to the contrary is a criminal offense.
, 20032006
| ABOUT THIS PROSPECTUS | 1 | ||
| TRANSGENOMIC, INC. | 1 | ||
| GENERAL INFORMATION | 6 | ||
| RISK FACTORS | 7 | ||
| USE OF PROCEEDS | |||
SELLING STOCKHOLDERS | 12 | ||
| PLAN OF DISTRIBUTION | |||
| LEGAL OPINIONS | 15 | ||
| WHERE YOU CAN FIND MORE INFORMATION | |||
| INCORPORATION OF CERTAIN | |||
Forward-Looking Statements
This prospectus contains or incorporates by reference certain forward-looking statements. Many of these forward-looking statements refer to our plans, objectives, expectations and intentions, as well as our future financial results and are subject to risk and uncertainty. You can identify these forward-looking statements by words such as "expects," "anticipates," "intends," "plans," "may," "will," "believes," "seeks," "estimates"“expects,” “anticipates,” “intends,” “plans,” “may,” “will,” “believes,” “seeks,” “estimates” and similar expressions. Because these forward-looking statements involve risks and uncertainties, there are many factors that could cause our actual results to differ materially from those expressed or implied by these forward-looking statements, including those discussed under "Risk Factors"“Risk Factors” in this Prospectus or described in reports that we file from time to time with the Securities and Exchange Commission, such as our Forms 10-K and 10-Q.
You should rely only on the information contained in or incorporated by reference into this Prospectus. We have not authorized any other person to provide you with different information. If anyone provides you with different or inconsistent information, you should not rely on it. The information in this Prospectus is current as of its date. Our business, financial condition, results of operations and prospects may have changed since that date.
This Prospectus references the following registered trademarks which are the property of Transgenomic: DNASEP® Columns, WAVE® System, WAVEMAKER® Software, TRANSFORMING THE WORLD® for Laboratory Equipment, TRANSGENOMIC® and the Globe Logo®; MutationDiscovery.com® Website, OLIGOSEP® for Systems and Reagents, OPTIMASE® Polymerase, RNASEP® Columns, WAVE OPTIMIZED® reagents, and WAVE® MD Systems. Additionally, this Prospectus references the following trademarks which are the property of Transgenomic: DHPLC™ or Education Programs, FIRST BASE™ Linkers, MitoScreen™ Kits, ProtocolWriter™ Software, Navigator™ Software, THE POWER OF DISCOVERY™ for Lab Reagents and Educational Programs, and Surveyor™ Nuclease. All other trademarks or trade names referred to in this Prospectus are the property of their respective owners.
This Prospectus does not contain all of the information you need to consider before buying our common stock. Additional important information is contained in the documents that are incorporated by reference into this Prospectus, including more detailed financial statements and the notes thereto. See "Incorporation“Incorporation of Certain Documents By Reference."” As a result, information presented in this Prospectus is qualified in its entirety by this additional information. We urge you to carefully read this entire Prospectus, along with the additional information that is incorporated by reference into this Prospectus, before investing in our common stock. In particular, you should carefully consider the information discussed under "Risk Factors".“Risk Factors.” All references to "we," "us"“we,” “us” or the "Company"”Company” in this Prospectus mean Transgenomic, Inc.
Our Business
We develop, assemble, manufacture and market versatile products and provide innovativeanalytical services to the medical research, clinical and pharmaceutical markets for use in genetic variation analysis. Products and services are sold through a direct sales force in the United States and throughout much of Western Europe. For the rest of the world, products and services for the synthesis, purificationare sold through more than 25 dealers and analysis of nucleic acids. Our operations fall into two principal segments, BioSystemsdistributors located in those local markets. Net sales are categorized as bioinstruments, bioconsumables and Nucleic Acids. Our BioSystems products include our WAVE® automated instrument systems and associated consumable products. Our Nucleic Acidsdiscovery services.
| • | Bioinstruments. The flagship product is the WAVE® system which has broad applicability to genetic variation detection in both molecular genetic research and molecular diagnostics. There was a world-wide installed base of over 1,300 WAVE® systems as of March 31, 2006. We utilize our sales and distribution network to sell a number of equipment platforms manufactured by third parties. Service contracts to maintain installed systems are sold and supported by technical support personnel. |
| • | Bioconsumables. The installed WAVE® base generates a demand for consumables that are required for the system’s continued operation. We develop, manufacture and sell these products. In addition, we manufacture and sell consumable products that can be used on equipment manufactured by third parties. These products include SURVEYOR Nuclease and a range of HPLC separation columns. |
Until recently, we also operated a segment that developed, manufactured and marketed chemical building blocks for nucleic acid synthesis to biotechnology, pharmaceutical and synthesized nucleic acids. Our service offerings include genetic variation discovery services, novel chemistry development servicesoligonucleotide synthesis companies and custom synthesisresearch institutions throughout the world (the “Nucleic Acids Operating Segment”). In
the fourth quarter of nucleic acids. Our2005, we implemented a plan to exit the Nucleic Acids Operating Segment and expect to complete this plan during 2006.
Business Strategy
Since inception, our business strategy ishas been to align ourprovide products and services with the advancements in the field of genetics and to become a major supplier of products and services tobiomedical researchers, medical institutions, diagnostic and pharmaceutical companies. Specifically,companies that are tied to advancements in the field of genomics. Advances in genomics have fueled efforts to understand individual differences in disease susceptibility, disease progression, and response to therapy. Accordingly, a principal component of our strategy is to:
Our technologies center around three core competencies: separation chemistries, enzymology, and nucleic acid chemistries. We employ novel chemistries for separating nucleic acids, proteins, peptides, amino acids and carbohydrates. One of our significant separation technologies is currently embodied in the WAVE System. The WAVE System is a versatile instrument that can be used for variation detection, size-based double-strand DNA separation and analysis, single-strand DNA separation and analysis and DNA purification. The WAVE System requires the use of various consumable products that we manufacture and sell separately.
Our second core competency is expertise in developing novel enzymes. Enzymes are proteins that act as catalysts for biochemical reactions. Several of these reactions are useful in genomics. The ability to develop enzymes useful in the experimental manipulation of genes provides powerful tools for producing genetic material in the form needed for further analysis or incorporation into diagnostics and therapeutics. These products can also expand the salesales of consumable products to WAVE System users and may also be sold for other applications. In September 2003 we introduced our SURVEYOR® product line of mutation detection kits. The key component of SURVEYOR Mutation Detection Kits is an enzyme that cleaves DNA at points where any type of DNA sequence variation exists, a significant improvement compared to related enzymes in its class. The resulting DNA fragments can then be analyzed by the Transgenomic WAVE System, fluorescent capillary electrophoresis or standard gel electrophoresis. SURVEYOR Kits provide a simple and robust method of scanning relatively large DNA fragments for both known and novel sequence variations. We have recently completed product testing with end users and have begun commercial sales. Sales to date have been nominal.
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Our third core competency is nucleic acid chemistries. Our synthetic nucleic acid products consist of chemical building blocks of nucleic acids (known as "phosphoramidites"), fluorescent markers and dyes, associated reagents, and synthesized segments of nucleic acids (known as "oligonucleotides" and "oligomimetics"). These products are used by research organizations, diagnostic companies and pharmaceutical companies. We produce these products in our Glasgow, Scotland facility. We recently completed a new production facility in Boulder, Colorado that will be able to further process phosphoramidite products into synthesized oligonucleotides in larger quantities. This facility will also provide process development, enhancement and unique chemistry development services. Finally, our nucleic acid chemistry capabilities also include the ability to produce related specialty chemicals, such as molecular tags, dyes, quenchers, linkers, and solvents used to modify nucleic acids for subsequent detection or manipulation.
Business Strategy
Our business strategy is to align our product and service offerings with the evolutionWAVE® system and create opportunities to market additional products to this customer base. In addition, through our Discovery Services offerings, we have gained exposure to the translational and clinical research markets, laying the foundation for increasing our participation in the full value chain associated with activities ranging from basic biomedical research to development of genetic advancements and to become a major supplier of products and services to researchers, medical institutions, diagnostic and pharmaceutical companies. Genetic advancements have developed and continue to develop over time. The movement in the field of genomics, and related market opportunities, has shifted from gene discovery to the analysis of variations in gene sequences. From these variations researchers are beginning to link the impacts of variations in the gene sequences to disorders and diseases. It is hoped that this knowledge will lead to the creation of diagnostic tests for these disorders and diseases and the development of therapeutic treatments and drugs.
Research and Developmentproducts.
We maintain an active program of research and development and expect to continue to spend significant amounts in 2004. Our research and development activities include the improvement of the DNA separation media used in our WAVE System, the refinement of the hardware and software components of the WAVE System, the creation of unique enzymes and WAVE-optimized enzymes, and the improvement of chemical and biochemical reaction techniques for synthetic nucleic acids.
Sales and Marketing
We currently sellhave sold our products to customers in major markets, includingover 30 countries. We use a direct sales and support staff for sales in the U.S., U.K. and most countries in Western Europe, with a direct sales and support staff.Europe. For the rest of the world, we sell our products through dealers and distributors located in those local markets. As of September 30, 2003, we hadWe have over 25 dealers and distributors. We also maintain regionally-based technical support staffs and applications scientists to support our sales and marketing activities throughout the U.S. and Europe.
Customers
We have sold our products to several hundred customers in over 30 countries. Customers include numerous leading academic and medical institutions in the U.S. and abroad. In addition, our customers also include a number of large, established U.S. and foreign pharmaceutical, biotech and commercial companies. No customer accounts for more than 10% of consolidated net sales.
Research and Development
We maintain an active program of research and development primarily directed toward the improvement of the DNA separation media used in our WAVE® system, the refinement of the hardware and software components of the WAVE® system, the creation of unique enzymes and WAVE-Optimized® enzymes, and the development of assays on the WAVE® system.
We will need to continue to invest in research and development activities in order to remain competitive and to take advantage of new business opportunities as they arise. For the years ended December 31, 2005, 2004 and 2003, our research and development expenses were $2.20 million, $4.50 million and $6.83 million, respectively. During the first quarter of 2006, we incurred research and development expense of $0.6 million. We expect our total research and development expense during 2006 to be approximately equal to the 2005 levels.
In addition to the amounts reflected above, our discontinued Nucleic Acids Operating Segment incurred no research and development expenses during three months ended March 31, 2006 or the year ended December 31, 2005, but incurred $2.18 million and $2.47 million of research and development expenses during the years ended December 31, 2004 and 2003, respectively.
Manufacturing
We manufacture bioconsumable products including our separation columns, liquid reagents, polymerase and nucleic acid products.enzymes. The major components of our WAVE® systems are manufactured for us by a third party. We integrate our own hardware and software with these third party manufactured components. Our manufacturing facilities for our WAVE® systems and bioconsumables are
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located in Omaha, Nebraska, San Jose, California, and Cramlington, England. Our Synthetic Nucleic Acid products are manufactured in Glasgow, ScotlandThe nature of our instruments and Boulder, Colorado.bioconsumables business does not generally lend itself to tracking and reporting sales backlog.
Intellectual Property
To establish and protect our proprietary technologies and products, we rely on a combination of patent, copyright, trademark and trade-secret laws, as well as confidentiality provisions in our contracts. We have successfully prosecuted or licensed in numerous patents protecting our core technologies, and as a result we presently own rights to more than 8040 issued patents and over 6020 pending applications in both the USU.S. and abroad. Our DNA separation technologiesWAVE® System and methods embodied in our BioSystems business unit productsrelated consumables, are protected by patents and licensed technologies. These patents, including licensedin-licensed technologies have remaining lives of between 9 to 18 years. Intellectual property related to our Nucleic Acid business unit is mainly licensed—that expire in technology.various periods beginning in 2013 through 2022. We will continue to file patent applications and seek new licenses as wewarranted to protect and develop new technologies of interest to our customer base in the coming years.
Competition
The markets in which we operate are highly competitive and characterized by rapidly changing technological advances. A number of our competitors possess substantial resources and are able to develop and offer a much greater breadth of products and/or services, coupled with significant marketing and distribution capabilities. We compete principally on the basis of providing uniquely enabling technical advantages in specific but significant market segments.
Competition for our WAVE® systems arises primarily from DNA sequencing and genotyping technologies. Competitors in these areas include Applied Biosystems, Beckman Coulter, Amersham (now part of GE Healthcare), Affymetrix, Agilent Technologies, Nanogen, Illumina, Sequenom, Pyrosequencing (now part of Biotage AB), Varian, and others. Competition for some of our non-WAVE® consumable products comes from numerous well-diversified life sciences reagents providers, including, among others, Invitrogen, Qiagen, Roche, Stratagene, and Promega. Our discovery services product line faces competition from a number of companies offering contract DNA sequencing and other genomic analysis services, including Genaissance Pharmaceuticals, GeneLogic, Agencourt, SeqWright, Gentris, and Perlagen. In addition, several clinical diagnostics service providers, such as Labcorp, Quest, and Specialty Laboratories, also offer related laboratory services in support of clinical trials. Finally, additional competition arises from academic core laboratory facilities.
Recent DevelopmentsEvents
In 2002, we began a project to upgrade and expand our nucleic acid building block production capabilities in Glasgow, Scotland. This project included the upgrading of equipment and processes at the current production facility and the purchase ofWe have hired a new facility thatChief Executive Officer
Craig Tuttle was appointed as our President and Chief Executive Officer on July 12, 2006. Mr. Tuttle succeeded our interim Chief Executive Officer, Michael Summers, who will permit significant capacity expansion. The improvementscontinue to the existing production facility were completed during 2002 and the first production line, or pilot line, in the new facility was completed in 2003. Also in 2002, we leased a production facility in Boulder, Colorado and have been developing itserve as a cGMP (Good Manufacturing Practices) facility principally for the synthesisour Chief Financial Officer. Mr. Tuttle, age 54, has over 25 years of oligonucleotides. The Boulder facility began limited cGMP production in the second quarter of 2003. While additional expansion projects for the Glasgow and Boulder production facilities may be undertaken over the next 2 to 3 years as business demand dictates, the current expansion projects have been substantially completed. As a result, our capital expenditures during the second half of 2003 have been significantly lower than during the first six months of the year. We expect capital expenditures for 2003 to be in the range of $6.2 million to $6.9 million.
Since our inception, we have operated at a loss. In addition, we have used more cash than we generated from our operations due primarily to the expenditures we have needed to make for research and development,general management, sales and marketing and expansionresearch and development experience in medical diagnostic and biotechnology companies. During 2004 and 2005, Mr. Tuttle was the President and COO of our physical facilities.Duke Scientific, a Northern California specialty chemistry manufacturer. Mr. Tuttle led the sale of Duke Scientific to Fisher Healthcare in 2005. From 1997 to 2003, Mr. Tuttle was with Apogent Technologies, Inc. where he served in various roles, including President of Applied Biotech, Inc., the manufacturer of the market leading home pregnancy test,
and General Manager at Seradyn, Inc., a specialty chemical and diagnostic test manufacturer. Mr. Tuttle earned a B.S in Biochemistry from UCLA, an M.S. in Biochemistry from the University of Colorado and an M.B.A from St. Mary’s College. We institutedentered into an employment agreement with Mr. Tuttle which has a cost reduction program beginning during the fourth quarterterm of 2002 in order to more closely align our cash expenditures with our current revenues and other cash resources. Among other things, this cost reduction program resulted in the elimination of a significant number of job positions during the first half of 2003 and the abandonment of certain intellectual property. We expect that, as a result of this restructuring, our total operating expenses for 2003two years, but will be 20%automatically extended for additional one-year periods unless either the Company or Mr. Tuttle elects not to 25% below 2002 levels. Further restructuring activities may occur during 2004.
In December 2003, we terminated our existing line of credit with Silicon Valley Bank, and entered into a new line of credit facility with Laurus Master Fund, Ltd. ("Laurus").further extend it. Under the terms of the agreement, we can borrowEmployment Agreement, Mr. Tuttle will be paid a base salary of $250,000 per year during the initial two-year term. His salary may increase in subsequent terms as determined by the compensation committee of our Board of Directors. Mr. Tuttle is also eligible to receive an annual bonus of up to $7,500,000 based on eligible accounts receivable20% of his base salary and inventory balances. Aswill receive allowances for a leased automobile, housing in the Omaha, Nebraska area and commuting costs for a period of December 31, 2003, we had approximately $3.0 million outstanding on this lineone year. Subject to approval of credit facility and, additional available credit of approximately $1.5 million, based upon our current eligible accounts receivable and inventory balances. This line of credit is secured by most of our assets. Payment of interest and principal can, under certain circumstances,the compensation committee, Mr. Tuttle will be made withgranted options to purchase 200,000 shares of our common stock atshortly after joining the Company, options to purchase 200,000 shares on January 12, 2007, and options to purchase 200,000 shares on July 12, 2007. Each such grant of options will vest equally on the next three anniversary dates of the respective grant. The Employment Agreement contains standard confidentiality and noncompetition provisions and provides for a conversion price that exceedsseverance payment to Mr. Tuttle equal to one year’s salary if he is discharged for reasons other than as defined in the average trading priceEmployment Agreement as “just cause”.
We amended our 1997 Stock Option Plan
On July 12, 2006, our stockholders approved the adoption of our commonnew 2006 Equity Incentive Plan (the “2006 Plan”) which amended and replaced our Fourth Amended and Restated 1997 Stock Option Plan (the “1997 Plan”). The 2006 Plan expands the types of equity compensation awards available to our compensation committee to include stock overappreciation rights, restricted stock, restricted stock units, performance shares and performance units, as well as the ten trading days priorqualified and non-qualified stock options that were previously available under the 1997 Plan. Under the 2006 Plan, the compensation committee will have more flexibility in designing compensation packages to execution of the new line of credit. Conversion of any of this debt to common stock may only occur if our shares trade at a price exceeding $2.42 per share for ten consecutive trading dayshelp us attract and is further subject to trading volume limitationsretain qualified officers, employees and a limitation ondirectors. The 2006 Plan also increased the total beneficial ownership by Laurusnumber of our common stock described in footnote (1) of the "Selling
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Stockholders" table. In connection with the new line of credit, we issued warrants to Laurus and its broker, TN Capital Equities, Ltd. ("TerraNova"), to acquire 595,918 shares of our common stock at exercise prices that also exceedmay be issued as equity compensation from 7,000,000 to 10,000,000 shares. As of July 12, 2006, options for a total of 6,263,533 shares have been issued under the average trading price1997 Plan. The adoption of the 2006 Plan did not change the basis upon which the Compensation Committee awards equity compensation grants.
We decided to exit our former Nucleic Acids operating segment.
On December 22, 2005, the Company’s Directors voted to either sell or close and liquidate the Nucleic Acids operating segment, which consists primarily of a manufacturing facility in Glasgow, Scotland. This decision was made after an evaluation of, among other things, short and long-term sales projections for products sold by this operating segment, including estimates of 2006 sales to the operating segment’s largest customer. We have commenced closure and liquidation of the facility in Glasgow, Scotland. At March 31, 2006 and December 31, 2005, we had accrued expenses of $0.42 million and $0.72 million related to statutory payment to affected employees and other costs specifically attributable to closure of the facility. We expect to incur additional period costs attributable to closure of the facility that will be recorded in discontinued operations during 2006.
We completed a private placement of our common stock overin the ten trading days priorfourth quarter of 2005.
On October 31, 2005, we issued securities to executioninstitutional investors in a private placement (the “2005 Private Placement”). The securities issued consisted of: (i) 14,925,743 shares of the new lineCompany’s common stock, plus (ii) five-year, non-callable warrants to purchase another 5,970,297 shares of credit.common stock with an exercise price of $1.20 per share. The aggregate purchase price for the securities sold was
$1.01 per share of common stock initially being sold or $15.08 million. In conjunction with this transaction, we issued a warrant to Oppenheimer & Co., Inc. to purchase 932,859 shares at $1.20 per share as part of their placement fee.
The net proceeds from the 2005 Private Placement were $13.90 million after transaction costs of $1.18 million. These proceeds were partially used to repay all outstanding principal and accrued interest on our loans to Laurus Master Funds, Ltd. (“Laurus”) including fees paid to Laurus to facilitate the 2005 Private Placement and TerraNovaprepayment penalties to Laurus in the sum of $0.82 million. As a result, the Laurus loans have been cancelled and are no longer available to us. The remaining proceeds of $5.35 million will be used for future working capital needs.
Liquidity and Capital Resources
We have experienced recurring net losses and had an accumulated deficit at March 31, 2006 of $122.40 million. To respond to changes in the overall business climate for our products, our liquidity position and capital structure, we have instituted significant change that began in the fourth quarter of 2004 with the sale of our specialty oligonucleotide manufacturing facility, a wide-reaching restructuring plan and the exit of our former Nucleic Acids Operating Segment.
Our working capital positions at March 31, 2006 and December 31, 2005 were as follows (in thousands):
| March 31, 2006 | December 31, 2005 | Change | ||||||||
Current assets (including cash and cash equivalents of $6,610 and $6,736, respectively) | $ | 17,942 | $ | 18,118 | $ | (176 | ) | |||
Current liabilities | 7,223 | 7,434 | (211 | ) | ||||||
Working capital | $ | 10,719 | $ | 10,684 | $ | 35 | ||||
While we believe that existing sources of liquidity are sufficient to meet expected cash needs through 2006, we have experienced recurring net losses and have historically relied upon cash flows from investing and financing activities to offset significant cash outflows from operating activities. To the extent necessary, we believe that we can manage costs and expenses at reduced levels to conserve working capital. The need for any such cost and expense reductions would likely delay implementation of our business plan. Ultimately, we must achieve sufficient revenues in order to generate positive net earnings and cash flows from operations.
Shares to be sold by Selling Stockholders
This Prospectus covers 24,090,795 shares of our common stock that the selling stockholders namedlisted under “Selling Stockholders” may offer and resell from time to time. These shares consist of (i) 13,978,218 shares issued in thisconjunction with the 2005 Private Placement; (ii) 6,903,156 shares issuable upon the exercise of warrants that were also issued in conjunction with the 2005 Private Placement; (c) 2,050,000 shares issued in conjunction with a private placement that closed in the fourth quarter of 2003; and (iv) 1,159,421 shares issuable upon the exercise of outstanding warrants that were issued primarily in conjunction with our past indebtedness to Laurus. The exercise price of these warrants range from $1.20 to $3.18 per share. The selling stockholders are offering the common stock as described under “Plan of Distribution.”
At July 12, 2006, we had 49,189,672 shares issued and outstanding. The number of shares outstanding does not include (i) the 8,062,577 shares issuable upon the exercise of outstanding warrants
and (ii) up to 9,246,231 shares of our common stock that we could issue under our employee stock option plan, of which 5,475,264 options are outstanding at June 30, 2006.
Use of Proceeds
This Prospectus with respectrelates to shares of our common stock that may be issued underoffered and sold from time to time by the termsselling stockholders. This Prospectus also relates to common stock issuable upon the exercise of a Secured Convertible Minimum Borrowing Note that is partwarrants held by certain selling stockholders. We will not receive any proceeds from the sale of our new lineshares of credit and uponcommon stock in this offering. We will, however, receive proceeds from the exercise of the warrants.
In December 2003, we announced that we had entered into several specific agreements with Novartis Pharmaceuticals Corp. to provide mutation discovery services inwarrants, if exercised. The proceeds from the contextexercise of translational research programs in oncology. These services are being provided using our WAVE system along with other technologies and represent a natural extension of our separation chemistries core competency.
In November 2003, we announced the signing of an agreement with Fisher Scientific, a leading global provider of scientific research products and services, to distribute Optimase Polymerase, Transgenomic's high fidelity, thermostable polymerase enzymewarrants, if any, will be used for PCR (polymerase chain reaction) amplification of DNA.
During the fourth quarter of 2003, we entered into a preliminary agreement for a sale/leaseback opportunity for our manufacturing facility in Glasgow, Scotland. Proceeds from this transaction are expected to be approximately $1.5 million, net of transaction costs and amounts used to repay our existing mortgage debt on the facility. We expect the transaction to close before January 31, 2004.
On September 9, 2003, we issued 1,780,000 shares of our common stock and on November 13, 2003, we issued 2,720,000 shares of our common stock in privately-negotiated sales. These shares were sold pursuant to the terms of a Securities Purchase Agreement, dated August 27, 2003. The sale of these shares was exempt from registration under the Securities Act of 1933, as amended (the "Securities Act") as a sale not involving a public offering. These shares have been registered for resale pursuant to a Registration Statement declared effective on November 14, 2003. The net proceeds to us, after payment of a 5% sales commission to Fahnestock & Co. Inc., who acted as our placement agent for the sale, and other expenses of the offering, were approximately $4.2 million.
In June 2003 we expanded our license agreement with Geron Corporation under which we produce nucleic acid building blocks. As part of the consideration for the amendment to the License Agreement we agreed to purchase 310,000 shares of Geron Corporation common stock at $5.05 per share, the Nasdaq closing price on June 2, 2003, pursuant to a securities purchase agreement. These shares were subsequently sold in an open market transaction. In September 2003, we signed an addendum to an existing supply agreement with Geron Corporation agreeing to supply additional nucleic acid products. This addendum was filled in the fourth quarter of 2003. Geron elected to pay for such products in Geron Corporation common stock. In 2003, Geron Corporation was the single largest customer for our Nucleic Acid Business Unit.
As a result of our cost control measures and reduced capital expenditures, we expect our cash usage to decrease in 2004. Based upon our current projections, we expect to meet our cash needs for 2004 from existing cash, additional cash generated from our working capital additional funds available to us under our $7.5 million credit facility and the net proceeds of the proposed sale/leaseback transaction. These projections assume continued revenue strength in our Biosystems business unit and increasing revenues from our Nucleic Acid business unit. We believe growth will result from increased consumable product offerings, continued strength in demand for our instruments and returning demand for nucleic acid products from Pharmaceutical and BioPharmaceutical customers. These projections may or may not be realized based upon actual operating results and capital project requirements. Thus, cash generated by these sources may be insufficient to satisfy our liquidity requirements. We may need to sell additional equity or debt securities or obtain additional credit arrangements. We cannot assure you that any financing arrangement will be available in amounts or on terms acceptable to us. Our
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failure to raise additional capital, if needed, would harm our financial condition, results of operations and our business. We are monitoring our liquidity position and are prepared to take appropriate measures, as needed, to address liquidity. Such measures include, but are not limited to, further expense reductions, asset sales and the placement of equity or debt.purposes.
General InformationGENERAL INFORMATION
We were incorporated in Delaware on March 6, 1997. Our principal office is located at 12325 Emmet Street, Omaha, Nebraska 68164 (telephone: 402-452-5400). We maintain manufacturing facilities in Omaha, Nebraska, Boulder, Colorado, San Jose, California Glasgow, Scotland and Cramlington, England. We maintain research and development offices in Gaithersburg, Maryland Boulder, Colorado, Piscataway, New Jersey and Omaha, Nebraska.
Our internet address iswww.transgenomic.com. We make our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reportsfiled by us with the SEC available free of charge throughon our website as soon as reasonably practicable after we file these documents with the Securities and Exchange Commission.reports are filed. The information contained inaddress of our website is www.transgenomic.com. Information on our website, including any SEC report, is not part of this Prospectusprospectus and you should not rely on it in deciding whether to invest in our common stock.
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An investment in our common stock involves a number of risks. Before making an investment decision, you should carefully consider all of the risks described in this Prospectus and the documents that are incorporated by reference into this Prospectus. The risks discussed in this Prospectus could materially adversely affect our business, financial condition and results of operations and cause the trading price of our common stock to decline significantly. If this occurs, you may lose all or part of your investment.
Risks Relating to Our Business
We may not have adequate financial resources to execute our business plan.
At March 31, 2006, we had cash and cash equivalents of $6.6 million. While we believe that existing sources of liquidity are sufficient to meet expected cash needs through 2006, we have experienced recurring net losses and have an accumulated deficit totaling $122.4 million at March 31, 2006 and have historically relied upon cash flows from investing and financing activities to offset significant cash outflows from operating activities. To the extent necessary, we believe that we can manage costs and expenses at reduced levels to conserve working capital. The need for any such cost and expense reductions would likely delay implementation of our business plan. Ultimately, we must achieve sufficient revenues in order to generate positive net earnings and cash flows from operations. However, we cannot assure you that we will be able to increase our revenues.
We have a history of operating losses and expect tomay incur losses in the future.
We have experienced losses from continuing operations since inception of our operations. Our operating lossesloss from continuing operations for each of the last three fiscalmonths ended March 31, 2006 was $0.30 million. Losses from continuing operations for the years ended December 31, 2005, 2004 and 2003 were $21.7$4.98 million, $9.7$13.75 million, and $8.7$9.56 million, in 2002, 2001 and 2000, respectively. During the nine months ended September 30, 2003, we experienced operating losses of $14.1 million. These losses have been due principally to the high levels of research and development expenses and sales and marketing expenses that we have incurred in order to develop and market our products.products, restructuring charges and impairment charges. In addition, markets for our products have developed more slowly than expected in somemany cases and may continue to do so. As a result, we expect tomay incur operating losses in the future and we may never be profitable.
We may not have adequate financial resources to execute our business plan.
We have historically experienced operating losses and negative cash flows. As of December 31, 2003, we had approximately $1.5 million in cash and cash equivalents. To date, we have financed our operations and capital expenditures primarily from the proceeds of public and private placements of common stock. Additionally, in December 2003 we entered into a loan agreement Laurus Master Fund, Ltd. for up to a $7.5 million secured line of credit. We expect to continue to need substantial amounts of cash to fund our operations and capital expenditures in the future. Based upon our current projections, we expect to meet our cash needs for 2004 from existing cash, additional cash generated from our working capital, additional funds available to us under our $7.5 million credit facility and the net proceeds of the proposed sale/leaseback transaction. These projections may or may not be realized based upon actual operating results and capital project requirements. Thus, our existing cash balances, cash generated by our working capital, available borrowings under credit agreements and net proceeds of the proposed sale/leaseback transaction may be insufficient to satisfy our liquidity requirements. Accordingly, we may need to raise additional capital in the future. However, we cannot assure you that additional financing will be available to us when we need it or on acceptable terms. If we raise additional capital by issuing common stock or other equity securities, the issuance of these securities would result in dilution of our existing stockholders. If we borrow additional money, we will incur additional interest costs and may become subject to covenants that restrict our operations. If we are not able to obtain additional capital as needed, we may need to take further steps to reduce our operating costs, and may not be able to execute parts or all of our business plan.
Markets for our products and services may develop slowly.
There are many factors that affect the market demand for our products and services that we cannot control. This is especially true in our Nucleic Acid segment where the demand for our products depends to a large degree on the success that our customers and potential customers have in developing useful pharmaceutical products based on genetic intervention. A central strategy for our Nucleic Acid segment is to sell synthetic nucleic acid products to biopharmaceutical and pharmaceutical companies that are seeking to develop commercially viable genomic-based diagnostic and therapeutic products. We have invested a significant amount of capital into acquiring and developing manufacturing facilities and other assets to allow us to pursue this market. However, this is a new field of commercial development, and many of these biopharmaceutical and pharmaceutical companies are in the early stages of their efforts to develop genomic-based diagnostics and therapeutics and have encountered
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difficulties in these efforts. As a result, the demand for our synthetic nucleic acid products is difficult to forecast and may develop slowly or sporadically. In addition, we cannot assure you that these companies will not develop internally the chemistries and manufacturing capabilities to produce the products they could buy from us. Demand for our WAVE System® system is similarly affected by the needs and budgetary resources of research institutions, universities, hospitals and others who use the WAVE System® system for genetic-variation research. The WAVE System® system represents a significant expenditure by these types of customers and often requires a long sales cycle. If revenues from the sales of our products and services continue at current levels, we may need to raise additional working capital or take steps to further reduce operating expenses.expenses or raise additional working capital. We cannot assure you that sales will increase or that we will be able to reduce operating expenses or raise additional working capitalcapital.
Sales of Discovery Services depend upon a small number of customers and may fluctuate greatly.
Sales of Discovery Services tend to be made pursuant to large contracts and other arrangements with a small number of customers. As a result, revenues related to Discovery Services may be subject to substantial fluctuation, as the gain or reduce operating expenses.loss of a single customer may have a significant impact on such revenues.
The sale of our products and business operations in international markets subjects us to additional risks.
InternationalDuring the past several years, international sales have historically accounted for approximately 50%represented more than half of our total net sales. As a result, a major portion of our revenues and expenses are subject to risks associated with international sales and operations. These risks include:
Our WAVE® system includes hardware components and instrumentation manufactured by a single supplier and if we are no longer able to obtain these components and instrumentation our ability to manufacture our products could be impaired.
We rely on a single supplier, Hitachi High Technologies America, to provide the basic instrument used in our WAVE® systems. While other suppliers of instrumentation and computer hardware are available, we believe that our arrangement with Hitachi offers strategic advantages. Hitachi is replacing its current instrument line with a new instrument line. While we presently plan to convert our technology and applications to this new instrument line, such conversion may not be successful and, therefore, we may incur additional costs for the custom manufacturing of the current instrument line. If we were required to seek alternative sources of supply, it could be time consuming or expensive or require significant and costly modification of our WAVE® system. Also, if we were unable to obtain instruments from Hitachi in sufficient quantities or in a timely manner, our ability to manufacture our products could be impaired, which could limit our future revenues.
We may not have adequate personnel to execute our business plan.
During the fourth quarter of 2002 and the first half of 2003, we took stepsIn order to reduce our operating costs, that resulted in a significant reduction in ourwe have significantly reduced the number of employees, including reductions in our research and development staff and our sales and marketing personnel. In addition, we may lose other key management, scientific, technical, sales and manufacturing personnel from time to time. It may be very difficult to replace personnel if they are needed in the future, and the loss of key personnel could harm our business and operating results. We cannot assure you that our employee reductions will not impair our ability to continue to develop new products and refine existing products in order to remain competitive. In addition, these reductions could prevent us from successfully marketing our products and developing our customer base.
Our markets are very competitive.
We compete with many other companies in both our Biosystems segment and Nucleic Acids segment. Competitors for our Biosystems segment include several companies, such as Varian, Waters, Agilent, Applied Biosystems, Beckman Coulter, Amersham Biosciences and Invitrogen. These companies provide various products and services that compete either directly with our WAVE system, bioconsumables and services, or indirectly through alternative technologies and/or methods. Competitors for our Nucleic Acid segment vary depending on the product. In the standard chemical building blocks market, we compete with Applied Biosystems, Proligo and Pierce Nucleic Acid Technologies. The competitors for our pharmaceutical-grade oligonucleotide synthesis products and services include primarily Proligo, Dow Chemical and Avecia. Many of these competing companiesour competitors have greater resources than we do and/or may enjoy other competitive advantages. This may allow them to more effectively market their products to our customers or potential customers, to develop products that make our products obsolete or to produce and sell products less expensively than us. As a result of
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these competitive factors, demand for and pricing of our products and services could be negatively affected.
The price for our common stock is volatile and may drop further.
Our stock has traded at prices as high as $30.00 per share immediately after our initial public offering in 2000 to as low as $0.93 per share in April 2003. This volatility in the price of our stock is attributable to a number of factors, not all of which relate to our operating results and financial position. Nevertheless, continued volatility in the market price for our stock should be expected and we cannot assure you that the price of our stock will increase in the future. Fluctuations or further declines in the price of our stock may affect your ability to sell shares of our stock and our ability to raise capital through future equity financing.
Our patents may not protect us from others using our technology that could harm our business and competitive position.
Patent law relating to the scope of claims in the technology fields in which we operate is still evolving. The degree of future protection for our proprietary rights is uncertain. Furthermore, we cannot be certain that others will not independently develop similar or alternative products or technology, duplicate any of our products, or, if patents are issued to us, design around the patented products developed by us. Our patents or licenses could be challenged by litigation and, if the outcome of such litigation were adverse to us, our competitors could be free to use our technology. We may not be able to obtain additional patents for our technology, or if we are able to do so, patents may not provide us with substantial protection or be commercially beneficial. In addition, we could incur substantial costs in litigation if we are required to defend ourselves in patent suits brought by third parties or if we initiate such suits.
We cannot be certain that other measures taken to protect our intellectual property will be effective.
We rely upon trade secret protection, copyright and trademark laws, non-disclosure agreements and other contractual provisions for some of our confidential and proprietary information that is not subject matter for which patent protection is being sought. Such measures, however, may not provide adequate protection for our trade secrets or other proprietary information. If theysuch measures do not protect our rights, third parties could use our technology and our ability to compete in the market would be reduced.
We are dependent upon our licensed technologies and may need to obtain additional licenses in the future to offer our products and remain competitive.
We have licensed key components of our technologies from third parties. If these agreements were to terminate prematurely due to our breach of the terms of these licenses or we otherwise fail to maintain our rights to such technology, we may lose the right to manufacture or sell a substantial portion of our products. In addition, we may need to obtain licenses to additional technologies in the future in order to keep our products competitive. If we fail to license or otherwise acquire necessary technologies, we may not be able to develop new products that we need to remain competitive.
The protection of intellectual property in foreign countries is uncertain.
A significant percentage of our sales are to customers located outside the U.S. The patent and other intellectual property laws of some foreign countries may not protect our intellectual property rights to the same extent as U.S. laws. We may need to bring proceedings to defend our patent rights or to determine the validity of our competitors'competitors’ foreign patents. These proceedings could result in
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substantial cost and diversion of our efforts. Finally, some of our patent protection in the U.S. is not available to us in foreign countries due to the laws of those countries.
Our products could infringe on the intellectual property rights of others.
There are a significant number of U.S. and foreign patents and patent applications submitted for technologies in, or related to, our area of business. As a result, any application or exploitation of our technology could infringe patents or proprietary rights of others and any licenses that we might need as a result of such infringement might not be available to us on commercially reasonable terms, if at all. This may lead others to assert patent infringement or other intellectual property claims against us.
Our failure to comply with any applicable government regulations or otherwise respond to claims relating to improper handling, storage or disposal of hazardous chemicals that we use may adversely affect our results of operations.
Our research and development and manufacturing activities involve the controlled use of hazardous materials and chemicals. We are subject to federal, state, local and localinternational laws and regulations governing the use, storage, handling and disposal of hazardous materials and waste products. If we fail to comply with applicable laws or regulations, we could be required to pay penalties or be held liable for any damages that result and this liability could exceed our financial resources. We cannot assure you that accidental contamination or injury will not occur. Any such accident could damage our research and manufacturing facilities and operations, resulting in delays and increased costs.
Risks Relating To This Offering and Ownership of Our Common Stock
The price for our common stock is volatile and may drop.
The trading price for our common stock has fluctuated significantly over recent years. The volatility in the price of our stock is attributable to a number of factors, not all of which relate to our operating results and financial position. Nevertheless, continued volatility in the market price for our stock should be expected and we cannot assure you that the price of our stock will not decrease in the future. Fluctuations or further declines in the price of our stock may affect our ability to sell shares of our stock and to raise capital through future equity financing.
If we are unable to maintain our outstandingNasdaq listing, your ability to trade shares of our common stock could suffer.
In order for our common stock to remain listed on the Nasdaq National Market (“Nasdaq”), we must meet the minimum listing requirements for continued listing, including, among other requirements, minimum bid price and market value of public float requirements. On February 15, 2006, we were notified that the bid price for our common stock over a 30-day period was below the $1.00 minimum required for continued listing of our common stock on the Nasdaq. In order to remain listed, the minimum bid price for our common stock must be at least $1.00 per share over ten consecutive business days before August 14, 2006. If we are not able to regain compliance with this listing requirement, we may be delisted from the Nasdaq. If our common stock is delisted from the Nasdaq, transactions in our common stock would likely be conducted only in the over-the counter market, or potentially on regional exchanges, which could negatively impact the trading volume and price of our common stock, and investors may find it more difficult to purchase or dispose of, or to obtain accurate quotations as to the market value of, our common stock. In addition, if our common stock were not listed on the Nasdaq and the trading price of our common stock fell below $1.00 per share, trading in our common stock would also be subject to the requirements of certain rules which require additional disclosures by broker-dealers in connection with any trades involving a stock defined as a “penny stock.” In such event, the additional burdens imposed on broker-dealers to effect transactions in our common stock could further limit the market liquidity of our common stock and the ability of investors to trade our common stock.
We may issue a substantial amount of our common stock to holders of options and warrants are exercised, orand this could reduce the market price for our outstanding debt is converted into common stock, it will result in dilution.stock.
As of December 31, 2003,At June 30, 2006, we had outstanding approximately 28.1 million shares of common stock. We also had obligations to issue approximately 5.7 million13,537,841 shares of common stock underincluding outstanding stock options representing 5,475,264 shares and warrants. Additionally,warrants representing 8,062,577 shares. In addition, on July 12, 2006, our stockholders approved the adoption of our 2006 Equity Incentive Plan which amended our previous Fourth Amended and Restated 1997 Stock Option Plan to increase the total number of common shares that we may issue shares of common stock upon conversion of all or part ofas equity compensation to our new line of creditofficers, directors and the exercise of related warrants.
employees from 7,000,000 to 10,000,000. The issuance of such additional shares of common stock may be dilutive to our current shareholdersstockholders and could negatively impact the market price of our common stock.
Our common stock is thinly traded and a large percentage of our shares are held by a small group of unrelated, institutional owners.
At July 12, 2006, we had 49,189,672 shares of common stock outstanding. Fewer than ten unrelated, institutional holders own a majority of these shares. The sale of significant shares into the public market has potential to cause significant downward pressure on the price of our common stock. This is particularly the case if the shares being placed into the market exceed the market’s ability to absorb the stock. Such an event could place further downward pressure on the price of our common stock. This presents an opportunity for short sellers to contribute to the further decline of our stock price. If there are significant short sales of our stock, the price decline that would result from this activity will cause the share price to decline more so, which, in turn, may cause long holders of the stock to sell their shares thereby contributing to sales of stock in the market.
The price you pay for shares offered by the selling stockholders may be higher than the prices paid by other people acquiring such shares.
Selling stockholders may sell shares under this Prospectus from time to time either at prices then prevailing in the market or at other prices they negotiate with buyers. Accordingly, the price you pay for shares of our common stock you purchase from a selling stockholder may be higher than the prices paid by other people acquiring such shares.
We received initial loan proceeds of $4.0 million of which $2.0 million relates to a Secured Convertible Minimum Borrowing Note which may be converted into 909,091 of the shares offered hereby. Additionally, we will receive approximately $1.5 million upon the exercise of warrants for the remaining 595,918 shares offered hereby. The loan proceeds and the proceeds from any exercise of these warrants will be used by us for working capital purposes. We will not receive any proceeds from the sale of the shares of common stockShares offered by this Prospectus. However, we will receive approximately $10.49 million upon the exercise of warrants for the remaining 8,062,577 Shares that may be offered hereby. The net proceeds we receive from any exercise of these warrants, if any, will be used by us primarily for working capital purposes.
The shares offered by this Prospectus may be sold from time to time by the selling stockholders named in the following table. The number of shares these selling stockholders are offering under this Prospectus will be adjusted to reflect any additional shares of common stock which may become issuable to the selling stockholders by reason of any stock dividend, stock split or other similar transaction effected without the receipt of consideration and which results in an increase in the number of our outstanding shares of common stock or which otherwise increases the number of shares issuable upon conversion of the loan proceeds or upon the exercise of the warrants under which such shares may by issued.
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The following table also sets forth the total number of shares of our common stock beneficially owned by each of the selling stockholders and the percentage of our total outstanding shares of common stock that each selling stockholder beneficially owns. Percentage ownership is based on the 28,119,122 shares of our common stock outstanding as of the date of this Prospectus plus the 1,505,009 shares that may be issued to certain of the selling stockholders and which may be sold under this Prospectus. The estimate of shares owned after this offering assumes that all shares offered by the Prospectus are sold. These estimates may prove to be inaccurate because the selling stockholders may offer all or some of their shares and because there currently are no agreements, arrangements or understandings with respect to the sale of any of the shares.
| | Shares Beneficially Owned Prior to the Offering | | Shares Beneficially Owned After the Offering | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Name | Number | Percentage | Shares to be Sold | Number | Percentage | |||||
| Laurus Master Fund, Ltd. (1) | 1,459,091 | 4.94 | % | 1,459,091 | 0 | * | ||||
| TN Capital Equities, Ltd. (2) | 45,918 | * | 45,918 | 0 | * | |||||
| 1,505,009 | 5.09 | % | 1,505,009 | 0 | * | |||||
Name | Shares Beneficially Owned Prior to the Offering | Shares to be Sold | Shares Beneficially Owned After the Offering | |||||||||
| Number | Percentage (1) | Number | Percentage | |||||||||
Laurus Master Fund, Ltd.(2) | 1,075,000 | 2.1 | % | 1,075,000 | 0 | * | ||||||
TN Capital Equities, Ltd.(3) | 61,484 | * | 61,484 | 0 | * | |||||||
Kopp Emerging Growth Fund(4) | 10,080,930 | 20.5 | % | 2,050,000 | 8,030,930 | 16.3 | % | |||||
Oppenheimer & Co. Inc.(5) | 932,859 | 1.9 | % | 932,859 | 0 | * | ||||||
LB I Group, Inc.(6) | 3,960,396 | 8.1 | % | 5,544,554 | 0 | * | ||||||
Knott Partners, L.P.(7), (8) | 1,990,800 | 4.0 | % | 1,990,800 | 0 | * | ||||||
Matterhorn Offshore Fund Ltd.(7), (9) | 2,181,754 | 4.4 | % | 2,181,754 | 0 | * | ||||||
Common Fund Hedged Equity Company(7),(10) | 249,200 | * | 249,200 | 0 | * | |||||||
Shoshone Partners, L.P.(7), (11) | 989,800 | 2.0 | % | 989,800 | 0 | * | ||||||
Anno, L.P.(7), (12) | 62,300 | * | 62,300 | 0 | * | |||||||
Good Steward Trading Company(7), (13) | 70,700 | * | 70,700 | 0 | * | |||||||
SF Capital Partners Ltd.(14) | 2,722,772 | 5.5 | % | 3,811,881 | 0 | * | ||||||
Perceptive Life Sciences Master Fund, Ltd.(15) | 2,072,277 | 4.1 | % | 2,072,277 | 0 | * | ||||||
Iroquois Master Fund Ltd.(16) | 1,732,674 | 3.5 | % | 1,732,674 | 0 | * | ||||||
Saffron Capital Int’l Fund Ltd.(17) | 693,070 | 1.4 | % | 693,070 | 0 | * | ||||||
RAQ, LLC(18) | 99,010 | * | 99,010 | 0 | * | |||||||
Omicron Master Trust(19) | 346,535 | * | 346,535 | 0 | * | |||||||
Endeavor Asset Management, L.P.(20) | 103,960 | * | 103,960 | 0 | * | |||||||
| * | less than 1% |
| (1) | Applicable percentage ownership is based on 49,189,672 shares of common stock outstanding as of July 12, 2006, together with securities presently exercisable or convertible into shares of common stock and securities that the holder, as of July 12, 2006, had the right to exercise or convert into shares of common stock within sixty (60) days. Securities that are exercisable or convertible as described above are deemed to be outstanding and beneficially owned by the person holding such securities for the purpose of computing the percentage of ownership of such person, but are not treated as outstanding for the purpose of computing the percentage ownership of any other person. |
| (2) | Shares to be sold consist of 1,075,000 shares issuable upon the exercise of warrants. The warrants are subject to a conversion cap which precludes the holder thereof from exercising such warrants to the extent that such owner would beneficially own in excess of 4.99% of the Company’s common stock. However, Laurus Master Fund Ltd. may elect to waive the 4.99% limitation with 75 days notice. |
| (3) | All shares to be sold and beneficially owned represent shares issuable upon the exercise of warrants. TN Capital Equities, Ltd. (“TerraNova”) served as broker for the agreements entered into between the Company and Laurus. Warrants were issued to TerraNova as partial compensation for their services as broker. |
| (4) | Kopp Investment Advisors, LLC acts as the advisor to Kopp Emerging Growth Fund. Voting and dispositive power over the shares held by Kopp Emerging Growth Fund are exercised by a portfolio management committee of Kopp Investment Advisors, LLC presently consisting of LeRoy Kopp, Sally Anderson and Steven Crowley. |
| (5) | All shares to be sold and beneficially owned represent shares issuable upon the exercise of warrants. Oppenheimer & Co. Inc. (“Oppenheimer”) served as placement agent for the private placement of securities to various institutional investors which closed on October 31, 2005. Warrants were issued to Oppenheimer as partial compensation for their services as placement agent. |
| (6) | Lehman Brothers Holdings Inc., Lehman Brothers Inc. and LB I Group Inc. have voting and dispositive power over these shares. Shares beneficially owned consist of 3,960,396 shares of common stock held in the name of LB I Group Inc. Shares to be sold also include warrants to purchase an additional 1,584,158 shares at $1.20 per share. These warrants are subject to a conversion cap which precludes the holder thereof from exercising such warrants to the extent that such owner would beneficially own in excess of 4.9% and 9.9% of the Company’s common stock. |
| (7) | David M. Knott and Dorset Management Group have sole or shared voting and dispositive power over these shares and warrants. |
| (8) | Shares owned and to be sold consist of 1,422,000 shares of common stock and warrants to purchase an additional 586,800 shares at $1.20 per share. The warrants are subject to a conversion cap which precludes the holder thereof from exercising such warrants to the extent that such owner would beneficially own in excess of 9.9% of the Company’s common stock. |
| (9) | Shares owned and to be sold consist of 1,558,396 shares of common stock and warrants to purchase an additional 623,358 shares at $1.20 per share. The warrants are subject to a conversion cap which precludes the holder thereof from exercising such warrants to the extent that such owner would beneficially own in excess of 9.9% of the Company’s common stock. |
| (10) | Shares owned and to be sold consist of 178,000 shares of common stock and warrants to purchase an additional 71,200 shares at $1.20 per share. The warrants are subject to a conversion cap which precludes the holder thereof from exercising such warrants to the extent that such owner would beneficially own in excess of 9.9% of the Company’s common stock. |
| (11) | Shares owned and to be sold consist of 707,000 shares of common stock and warrants to purchase an additional 282,800 shares at $1.20 per share. The warrants are subject to a conversion cap which precludes the holder thereof from exercising such warrants to the extent that such owner would beneficially own in excess of 9.9% of the Company’s common stock. |
| (12) | Shares owned and to be sold consist of 44,500 shares of common stock and warrants to purchase an additional 17,800 shares at $1.20 per share. The warrants are subject to a conversion cap which precludes the holder thereof from exercising such warrants to the extent that such owner would beneficially own in excess of 9.9% of the Company’s common stock. |
| (13) | Shares owned and to be sold consist of 50,500 shares of common stock and warrants to purchase an additional 20,200 shares at $1.20 per share. The warrants are subject to a conversion cap which precludes the holder thereof from exercising such warrants to the extent that such owner would beneficially own in excess of 9.9% of the Company’s common stock. |
| (14) | Michael A. Roth and Brian J. Stark, as managing members of Stark Offshore Management, LLC, which is the investment manager of SF Capital Partners Ltd., have sole voting and dispositive power over these shares. Shares beneficially owned consist of 2,722,772 shares of common stock held in the name of SF Capital Partners Ltd. Shares to be sold also include warrants to purchase an additional 1,089,109 shares at $1.20 per share. These warrants are subject to a conversion cap which precludes the holder thereof from exercising such warrants to the extent that such owner would beneficially own in excess of 4.9% and 9.9% of the Company’s common stock. |
| (15) | Consists of 1,280,198 shares owned by Perceptive Life Sciences Master Fund, Ltd. and warrants to purchase an additional 792,079 shares at $1.20 per share. The warrants are subject to a conversion cap which precludes the holder thereof from exercising such warrants to the extent that such owner would beneficially own in excess of 9.9% of the Company’s common stock. |
| (16) | Shares owned and to be sold consist of 1,237,624 shares of common stock and warrants to purchase an additional 495,050 shares at $1.20 per share. |
| (17) | Shares owned and to be sold consist of 495,050 shares of common stock and warrants to purchase an additional 198,020 shares at $1.20 per share. |
| (18) | Shares consist of warrants to purchase 99,010 shares at $1.20 per share. |
| (19) | Shares owned and to be sold consist of 247,525 shares of common stock and warrants to purchase an additional 99,010 shares at $1.20 per share. |
| (20) | Shares owned and to be sold consist of 74,257 shares of common stock and warrants to purchase an additional 29,703 shares at $1.20 per share. |
Each selling stockholder acquired, or will acquire, the shares to be sold by such selling stockholder in the ordinary course of business and, at the time of acquisition of such shares, no selling stockholder had any agreement or understanding, directly or indirectly, to distribute such shares.
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The selling stockholders and any of their pledges, assignees, donees selling shares received from such selling stockholders as a gift, and successors-in-interest may, from time to time, sell any or their donees or pledgees may sellall of their shares of our common stock from time to time. The selling stockholders will act independently of uson any stock exchange, market or trading facility on which the shares are traded or in making decisions regarding the timing, manner and size of each sale. Theprivate transactions. These sales may be made on the Nasdaq National Market, in the over-the-counter marketat fixed or otherwise, at prices and terms then prevailing or at prices related to the then current market price, or in negotiated transactions. The last reported sale price of our common stock on January 6, 2004 was $2.17 per share.prices. The selling stockholders may effect such transactions by selling the shares to or through broker-dealers. The shares may be sold byuse any one or more of or a combination of, the following:following methods when selling shares:
To
The selling stockholders may also sell shares under Rule 144 under the Securities Act of 1933, as amended, if available, rather than under this Prospectus may be amended or supplemented from time to time to describe a specific plan of distribution. In effecting sales, broker-dealersprospectus.
Broker-dealers engaged by the selling stockholders may arrange for other broker-dealers to participate in sales. Broker-dealers may receive commissions or discounts from the resales. The selling stockholders may enter into hedging transactions with broker-dealers in connection with distributions(or, if any broker-dealer acts as agent for the purchaser of the shares, or otherwise. In these transactions, broker-dealers may engage in short sales of the shares in the course of hedging the positions they assume with selling stockholders. The selling stockholders also may sell shares short and redeliver the shares to close out such short positions. The selling stockholders may enter into option or other transactions with broker-dealers which require the delivery to the broker-dealer of the shares. The broker-dealer may then resell or otherwise transfer such shares under this prospectus. The selling stockholders also may lend or pledge their shares to a broker-dealer. The broker-dealer may sell the shares so lent, or upon a default the broker-dealer may sell the pledged shares under this Prospectus.
Broker-dealers or agents may receive compensation in the form of commissions, discounts or concessions from selling stockholders. Broker-dealers or agents may also receive compensation from the purchasers of the shares for whom they act as agents or to whom they sell as principals, or both. Compensation as to a particular broker-dealer might be in excess of customary commissions and will bepurchaser) in amounts to be negotiatednegotiated. The selling stockholders do not expect these commissions and discounts to exceed what is customary in connection with the sale. Broker-dealerstypes of transactions involved.
The selling stockholders and any broker-dealers or agents and any other participating broker-dealers orthat are involved in selling the selling stockholdersshares may be deemed to be "underwriters"“underwriters” within the meaning of Section 2(11) of the Securities Act of 1933 (the "Securities Act") in connection with sales of the shares. Accordingly,such sales. In such event, any such commission, discount or concessioncommissions received by themsuch broker-dealers or agents and any profit on the resale of the shares purchased by them may be deemed to be underwriting discountscommissions or commissionsdiscounts under the Securities Act. Because selling stockholders may be deemed
We are required to be "underwriters" withinpay all fees and expenses incident to the meaning of Section 2(11)registration of the Securities Act,shares, including certain fees and disbursements of counsel to the selling stockholders. We have agreed to indemnify the selling stockholders will be subject to the prospectus delivery requirements ofagainst certain losses, claims, damages and liabilities, including liabilities under the Securities Act. In addition, any securities covered by
To the extent required, we will amend or supplement this Prospectus which qualify for sale under Rule 144 promulgated under the Securities Act may be sold under Rule 144 rather than under this Prospectus. The selling stockholders have advised us that they have not entered into any agreements, understandings orprospectus to disclose material arrangements with any underwriters or broker-dealers regarding the saleplan of their securities. There is no underwriter or coordinating broker acting in connectiondistribution.
To comply with the proposed salesecurities laws of shares by the selling stockholders.
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The shares will be sold only throughcertain jurisdictions, registered or licensed brokers or dealers if required under applicable state securities laws. In addition, in certain statesmay need to offer or sell the shares may not be sold unless they have been registered or qualified for sale in the applicable state or an exemption from the registration or qualification requirement is available and is complied with.
Underoffered by this prospectus. The applicable rules and
regulations under the Securities Exchange Act of 1934, (the "Exchange Act"),as amended, may limit any person engaged in thea distribution of the shares may not simultaneouslyof common stock covered by this prospectus in its ability to engage in market making activities with respect to our common stocksuch shares. A selling stockholder, for a period of two business days prior to the commencement of such distribution. In addition, each selling stockholderexample, will be subject to applicable provisions of the Exchange Act and the associated rules and regulations under the Exchange Act, including Regulation M,it, which provisions may limit the timing of purchases and sales of any shares of our common stock by thethat selling stockholders. We will make copies of this Prospectus available to the selling stockholders and have informed them of the need to deliver copies of this Prospectus to purchasers at or prior to the time of any sale of the shares.stockholder.
We will file a supplement to this Prospectus, if required, to comply with Rule 424(b) under the Securities Act upon being notified by a selling stockholder that any material arrangements have been entered into with a broker-dealer for the sale of shares through a block trade, special offering, exchange distribution or secondary distribution or a purchase by a broker or dealer. Such supplement will disclose:EXPERTS
The consolidated financial statements incorporated by reference in this prospectus and
In addition, upon being notified by a selling stockholder that a donee or pledgee intends to sell more than 500 shares, we will file a supplement to this Prospectus.
We will bear all costs, expenses and fees in connection with the registration of the shares. We agreed to indemnify and hold the selling stockholders harmless against certain liabilities under the Securities Act that could arise in connection with the sale by the selling stockholders of the shares. The selling stockholders will bear all commissions and discounts, if any, attributable to the sales of the shares. The selling stockholders may agree to indemnify any broker-dealer or agent that participates in transactions involving sales of the shares against certain liabilities, including liabilities arising under the Securities Act.
The financial statements as of December 31, 2002 and 2001 and for each of the three years in the period ended December 31, 2002 incorporated in this Prospectus by reference from ourthe Company’s Annual Report on Form 10-K for the year ended December 31, 2002 have been audited by Deloitte & Touche LLP, an independent auditors,registered public accounting firm, as stated in their report, (which report expresses an unqualified opinion and includes an explanatory paragraph relating to our change in method of accounting for goodwill and other intangible assets in connection with the adoption of Statement of Financial Accounting Standards No. 142,Goodwill and Other Intangible Assets, in 2002 and our receipt of a commitment letter for a new revolving credit agreement on March 31, 2003), which is incorporated herein by reference, and has
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have been so incorporated in reliance upon the report of such firm given upon their authority as experts in accounting and auditing.
The validity of the common stock offered by this Prospectus has been passed upon for us by Kutak Rock LLP, Omaha, Nebraska.
WHERE YOU CAN FIND MORE INFORMATION
We file annual, quarterly and special reports, proxy statements and other information with the Securities and Exchange Commission (the "SEC").SEC. You may read and copy the materials we file at the SEC'sSEC’s Public Reference Room at 450 Fifth100 F Street, N.W.N.E., Washington, D.C. 20549, as well as at the SEC's regional office at Citicorp Center, 500 West Madison Street, Room 1400, Chicago, Illinois 60661-2511.20549. Please call the CommissionSEC at 1-800-SEC-0330 for further information on the operation of the Public Reference Rooms.Room. Our SEC filings are also available to the public from the SEC's World Wide Web site on the Internet from the SEC’s Web site at http://www.sec.gov. This site contains reports, proxy and information statements and other information regarding issuers that file documents electronically with the SEC.
We maintain a site on the World Wide Web at www.transgenomic.com. The information contained in our website is not part of this Prospectus and you should not rely on it in deciding whether to invest in our common stock.
We have filed a Registration Statement on Form S-3,registration statement, of which this Prospectusprospectus is a part, covering the securities offered hereby. As allowed by SEC rules, this Prospectusprospectus does not containinclude all of the information set forthcontained in the Registration Statementregistration statement and the exhibits, financial statements and schedules thereto. We refer you to the Registration Statement,registration statement, and the exhibits, financial statements and schedules thereto, for further information. This Prospectusprospectus is qualified in its entirety by such other information.
INCORPORATION OF CERTAIN DOCUMENTSINFORMATION BY REFERENCE
The SEC allows us to "incorporate“incorporate by reference"reference” the information intowe file with them, which means:
We filed separately by usthe following documents with the SEC under the Securities Exchange Act of 1934 (the "Exchange Act"). The information incorporatedand incorporate them by reference is deemed to be part ofinto this Prospectus, except for any information superseded by information in this Prospectus. We have filed our annual reportProspectus:
Any documents we file pursuant to SectionSections 13(a), 13(c), 14 or 15(d) of the Exchange Act after the date of this Prospectus and prior to the termination of the offering of the securities to which this Prospectus relates will automatically be deemed to be incorporated by reference into this Prospectus and to be part hereof from the date of filing those documents. Any documents we file pursuant to these sections of the Exchange Act after the date of the registration statement that contains this Prospectus and prior to the effectiveness of the registration statement will automatically be deemed to be incorporated by reference into this Prospectus and to be part hereof from the date of filing those documents. In no event, however, will any of the information that we “furnish” to the SEC in any Current Report on Form 8-K from time to time be incorporated by reference into, or otherwise included in, this Prospectus.
Any statement contained in this Prospectus or in aany document incorporated, or deemed to be incorporated, by reference into this Prospectus shall be deemed to be modified or superseded for all purposes of this Prospectus to the extent that a statement contained in this Prospectus or in any othersubsequently filed document whichthat also is alsoor is deemed to be incorporated by reference into this Prospectus modifies or supersedes thatsuch statement. Any statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute a part of this Prospectus and the related registration statement.
You maycan obtain copiesany of all documents which are incorporated in this Prospectus by reference (other than the exhibits to those documents which are not specificallyour filings incorporated by reference herein)into this Prospectus from us or from the SEC on the SEC’s Web site at the address listed above. We will provide without charge to each person to whom this Prospectus is delivered, upon written or oral request, a copy of these filings or portions of these filings by writing or calling Mr. Mitchell L. Murphy, at telephoning:
Michael A. Summers
Transgenomic, Inc.,
12325 Emmet Street
Omaha, NE 68164 telephone number (402) 452-5400.
402-452-5400
1,505,00924,090,795 Shares
TRANSGENOMIC, INC.
COMMON STOCK
PROSPECTUS
, 20032006
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
| Item 14. | Other Expenses of Issuance and Distribution |
Item 14. Other Expenses of Issuance and Distribution.
The following table showsindicates the estimated expenses to be incurred in connection with the issuanceoffering described in this Registration Statement, other than the underwriting discounts and distributioncommissions, all of which will be paid by the common stock being registered:Company. All amounts are estimates, other than the SEC registration fee and the NASD filing fee.
| Securities and Exchange Commission filing fees | $ | 228 | |
| Legal fees and expenses | 10,000 | ||
| Accounting fees and expenses | 5,000 | ||
| Printing and engraving | 1,000 | ||
| Miscellaneous expenses | 1,000 | ||
| Total | $ | 17,228 | |
Securities and Exchange Commission filing fees | $ | 1,212 | |
Legal fees and expenses | 5,000 | ||
Accounting fees and expenses | 5,000 | ||
Printing and engraving | 1,000 | ||
Miscellaneous expenses | 788 | ||
Total | $ | 13,000 | |
| Item 15. | Indemnification of Directors and Officers |
Item 15. Indemnification of Directors and Officers.
Section 145 of the Delaware General Corporation Law authorizes a court to award, or a corporation to grant, indemnity to directors and officers in terms sufficiently broad to permit such indemnification under certain circumstances for liabilities (including reimbursement of expenses incurred) arising under the Securities Act of 1933.
As permitted by the Delaware General Corporation Law, the Registrant's FirstRegistrant’s Third Restated Certificate of Incorporation eliminates the personal liability of its directors for monetary damages for breach of fiduciary duty as a director, except for liability (1) for any breach of the director'sdirector’s duty of loyalty to the Registrant or its stockholders, (2) for acts or omissions not in good faith or that involve intentional misconduct or a knowing violation of law, (3) under Section 174 of the Delaware General Corporation Law (regarding unlawful dividends and stock purchases) or (4) for any transaction from which the director derived an improper personal benefit. If the Delaware General Corporation Law is amended to authorize further elimination or limiting of directors'directors’ personal liability, then the FirstThird Amended and Restated Certificate provides that the personal liability of directors will be eliminated or limited to the fullest extent provided under the Delaware General Corporation Law.
As permitted by the Delaware General Corporation Law, the Registrant's FirstRegistrant’s Third Amended and Restated Certificate of Incorporation and its Bylaws provide that (1) the Registrant is required to indemnify its directors and officers to the fullest extent permitted by the Delaware General Corporation Law, subject to certain very limited exceptions, (2) the Registrant may indemnify its other employees and agents as set forth in the Delaware General Corporation Law, (3) the Registrant is required to advance expenses, as incurred, to its directors and executive officers in connection with a legal proceeding to the fullest extent permitted by the Delaware General Corporation Law, subject to certain conditions and (4) the rights conferred by the FirstThird Amended and Restated Certificate of Incorporation and Bylaws are not exclusive.
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The Delaware General Corporation Law authorizes a corporation to indemnify its directors and officers provided that the corporation shall not eliminate or limit the liability of a director as follows:
(a)
(b)
(c)
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(e)
The Delaware General Corporation Law requires a corporation to indemnify a director or officer to the extent that the director or officer has been successful, on the merits or otherwise, in defense of any action, suit or proceeding for which indemnification is lawful.
The RegistrantCompany maintains a director and officer insurance policy which insures the directors and officers of the RegistrantCompany against damages, judgments, settlements and costs incurred by reason of certain wrongful acts committed by such persons in their capacities as directors and officers.
| Item 16. | Exhibits. |
| 2.1 | Agreement and Plan of Merger, dated as of April 30, 2001, by and among Registrant, TBIO Nebraska, Inc., TBIO, Inc. and Annovis, Inc. (incorporated by reference to Exhibit 2.1 to Registrant’s Report on Form 8-K filed on May 31, 2001) | |
| 2.2 | Addendum to Agreement and Plan of Merger, dated as of May 18, 2001, by and among Registrant, TBIO Nebraska, Inc., TBIO, Inc. and Annovis, Inc. (incorporated by reference to Exhibit 2.2 to Registrant’s Report on Form 8-K filed on May 31, 2001) | |
| 2.3 | Asset Purchase Agreement, dated as of November 8, 2004, by and between Registrant and Eyetech Boulder Inc. (incorporated by reference to Exhibit 2.3 to Registrant’s Report on Form 10-K (Registration No. 000-30975) filed on April 15, 2005) | |
| 4.1 | Form of Certificate of the Registrant’s Common Stock (incorporated by reference to Exhibit 4 to Registration Statement on Form S-1 (Registration No. 333-32174) filed on March 10, 2000) | |
| 5.1 | Opinion of Kutak Rock LLP | |
| 23.1 | Consent of Deloitte & Touche LLP | |
| 23.2 | Consent of Kutak Rock LLP (included in Exhibit 5.1) | |
| 24 | Powers of Attorney (included on pageII-5 hereto) | |
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| Item 17. | Undertakings |
We undertake:
(1) To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:
(i) to include any prospectus required by section 10(a)(3) of the Securities Act of 1933;
(ii) to reflect in the prospectus any facts or events arising after the effective date of this registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in this registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered
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(if(if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of a prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20% change in the maximum aggregate offering price set forth in the "Calculation“Calculation of Registration Fee"Fee” in this registration statement;
(iii) to include any material information with respect to the plan of distribution not previously disclosed in this registration statement or any material change to such information in this registration statementstatement; provided, however,, that the undertakings set forth in paragraphs (i) and (ii) above do not apply if the information required to be included in a post-effective amendment by those paragraphs is contained in periodic reports filed with or furnished to the Commission by the Registrant pursuant to section 13 or section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in this registration statement.
(2) That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
(3) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.
(4) That, for purposes of determining any liability under the Securities Act of 1933, each filing of the Registrant'sRegistrant’s annual report pursuant to section 13(a) or section 15(d) of the Securities Exchange Act of 1934 that is incorporated by reference in this registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
(5) Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act of 1933 and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director, officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted against the Registrant by such director, officer or controlling person in connection with the securities being
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registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act of 1933 and will be governed by the final adjudication of such issue.
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Pursuant to the requirements of the Securities Act of 1933, the Registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form S-3 and has duly caused Amendment No. 1 to this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in Omaha, Nebraska, on the 7th day of January, 2004.July 14, 2006.
TRANSGENOMIC, INC. | ||
By: | ||
Craig J. Tuttle | ||
| President and Chief Executive Officer | ||
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned, whose signatures appear below, hereby constitute and appoint Michael Summers as their true and lawful attorney-in-fact and agent, with full power of substitution and resubstitution, for them and in their name, place and stead, in any and all capacities, to sign any and all amendments (including post-effective amendments) to this registration statement, and to file the same, with exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorney-in-fact and agent full power and authority to do and perform each and every act and thing requisite and necessary to be done, as full and to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorney-in-fact and agent, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed below by the following persons in the capacities and on the dates indicated.
| Date: | By: | /s/ CRAIG J. TUTTLE | |||||||
| Craig J. Tuttle | |||||||||
President and Chief Executive Officer (Principal Executive Officer) | |||||||||
| Date: July 14, 2006 | By: | /s/ MICHAEL A. SUMMERS | |||||||
Chief Financial Officer (Principal Financial Officer) | |||||||||
| Date: July 14, 2006 | By: | /s/ COLLIN J. D’SILVA | |||||||
| Collin J. | |||||||||
| Chairman of the Board, Director | |||||||||
| Date: | By: | /s/ GREGORY J. DUMAN | |||||||
| Gregory J. Duman, | |||||||||
| Director | |||||||||
| Date: | By: | /s/ JEFFREY SKLAR | |||||||
| Jeffrey Sklar, | |||||||||
| Director | |||||||||
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| Date: July 14, 2006 | By: | /s/ ROLAND J. SANTONI | ||||||
| Roland J. Santoni, | ||||||||
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| Director | ||||||||
By: | /s/ PARAG SAXENA | |||||||
| Parag Saxena, | ||||||||
| Director | ||||||||
By: | /s/ GREGORY SLOMA | |||||||
| Gregory Sloma, | ||||||||
| Director | ||||||||
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