Chembio Diagnostics Announces Proposed Public Offering of Common Stock

HAUPPAUGE, N.Y., May 06, 2020 (GLOBE NEWSWIRE) -- Chembio Diagnostics, Inc. (Nasdaq: CEMI) (“Chembio”), a leading point-of-care diagnostic company focused on infectious diseases, announced today a proposed public offering of an undetermined number of shares of its common stock. All shares of common stock to be sold in the proposed offering will be offered by Chembio. In addition, Chembio expects to grant the underwriters a 30-day option to purchase additional shares, in a number equal to up to 15% of the number of shares of common stock sold in the proposed offering, at the public offering price less the underwriting discounts and commissions. The proposed offering is subject to market and other conditions, as well as customary closing conditions, and there can be no assurance as to whether or when the proposed offering may be completed, or as to the size or other terms thereof.

Chembio intends to use the net proceeds from the offering to support the refocus of its business strategy, including the manufacturing and further commercialization of the DPP COVID‑19 System, to expand its sales force to support growth, to increase its manufacturing capacity and for other general corporate purposes.

Baird is acting as sole book‑running manager for the proposed offering. Dougherty & Company LLC is acting as co-manager for the proposed offering.

The offering is being made pursuant to an effective shelf registration statement on Form S-3 (No. 333‑227398) previously filed with the U.S. Securities and Exchange Commission (the “SEC”). The shelf registration statement and a preliminary prospectus supplement relating to the proposed offering have been filed with the SEC and are available on the SEC’s website located at www.sec.gov. Copies of the preliminary prospectus supplement and accompanying prospectus may also be obtained by contacting Robert W. Baird & Co. Incorporated, Attention: Syndicate Department, 777 E. Wisconsin Avenue, Milwaukee, WI 53202, by telephone at (800) 792-2473 or by email at syndicate@rwbaird.com. The final terms of the proposed offering will be disclosed in a final prospectus supplement to be filed with the SEC.

This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

About Chembio Diagnostics
Chembio is a leading point-of-care diagnostics company focused on detecting and diagnosing infectious diseases including COVID-19, sexually transmitted disease and fever and tropical disease. Chembio’s patented DPP technology platform, which uses a small drop of blood from the fingertip, provides high-quality, cost-effective results in approximately 15 minutes. Coupled with Chembio’s extensive scientific expertise, its novel DPP technology offers broad market applications beyond infectious disease. Chembio’s products are sold globally, directly and through distributors, to hospitals and clinics, physician offices, clinical laboratories, public health organizations, government agencies, and consumers. Learn more at www.chembio.com.

DPP is Chembio’s registered trademark. For convenience, this trademark appears in this release without ® symbols, but that practice does not mean that Chembio will not assert, to the fullest extent under applicable law, its rights to its trademark.

Forward-Looking Statements
This press release contains statements, concerning, among other matters, the anticipated use of net proceeds from the proposed offering, that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements reflect management’s current views based on certain assumptions, and they involve risks and uncertainties. Actual results, events or performance may differ materially from the forward-looking statements due to a number of important factors, and will be dependent upon a variety of factors, including risks described in public reports filed by Chembio with the SEC, including under the caption “Risk Factors” in Chembio’s Annual Report on Form 10‑K for the fiscal year ended December 31, 2019, as amended, and Chembio’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2020. Chembio undertakes no obligation to update any forward-looking statements contained in this press release as a result of new information, future events or otherwise.

Contact:
Philip Taylor
Gilmartin Group
(415) 937-5406
investor@chembio.com

Source: Chembio Diagnostics, Inc.