Rosetta Genomics fires 35, to raise $1.9m

Rosetta Genomics Ltd. (Nasdaq:ROSG) has fired 35 employees, in an effort to halve its operating costs by $4.2 million a year, and plans to raise $1.9 million in a private placement on Tuesday.

The company will issue 2,598,002 shares at $0.75 per share, and will issue two series of warrants: one series for the purchase of 2,598,002 shares at $1 per share, and the second series for the purchase of 1,299,001 shares at $0.01 per share.

For several years, Rosetta has been trying to sell its cancer diagnostic kits in order to personalize and improve treatment. It has changed its business model and its business partners several times, and is now trying to enter the US market on its own. The company had $3.5 million in cash at the end of June.

Last week, Rosetta signed an exclusive distribution agreement for its products in China with Avatao Biotech Ltd.

Rosetta's share price fell 11.4% on Friday, following the announcements, to $0.82, giving a market cap of $6 million.

Published by Globes [online], Israel business news - www.globes-online.com - on October 16, 2011