Cancer Genetics Inc (NASDAQ:CGIX) was a massive decliner during the trading session. The stock collapsed by close to 7 percent on high volumes, which were 1.2 times the daily average. The stock has been unable to breach above the resistance zone at $3.87 due to lack of buying interest at higher levels. The stock currently trades below all daily moving averages. The indicator for relative strength has given a fresh sell signal indicative of lack of strength. The MACD oscillator has given a sell signal, which is considered to be bearish. Trades see the stock heading to levels of $3.03 in the near term.
Cancer Genetics Inc (NASDAQ:CGIX) recently announced that New Jersey Technology Business Tax Certificate Transfer (NOL) Program gave green signal to company’s gross tax credit worth $1.2 million. This approval is given for the present year, i.e. 2015. After completing its transfer of tax credit, the company will receive net cash of $1.1 million (approx.), after deducting all fees and expenses.
Additional funding to be used for company expansion
Cancer Genetics CEO, Panna Sharma, explained that the company is part of the biotechnology community of New Jersey. It must be noted that the community of biotech in NJ is growing continuously. With the recognition and support of New Jersey Economic Development Authority (NJEDA), Cancer Genetics has become liable to non-diluted funding.
According to the CEO, this funding will be utilized for company’s strategic expansion as well as the development of new tests and innovative technologies. The company works towards making changes in the present scenario of cancer care.
About the New Jersey Economic Development Authority’s programme
The New Jersey Technology Business Tax Certificate Transfer (NOL) Program is an initiative of New Jersey Economic Development Authority (NJEDA). This programme was started in 1999. The purpose of the programme is creation of jobs as well as innovation.
For this purpose, EDA provides annual funds to eligible biotechnology and technology companies based in New Jersey.
EDA also offers fund through NOL program of New Jersey. In 2015, a total of 41 companies gave their nod to split an amount of $47.4 million under this programme. The purpose of NOL is to allow eligible biotechnology and technology companies to sell their tax losses so that they can raise their operating cash flow.
As per the NOL program, the companies parts ways with the research and development tax credits or New Jersey tax losses or both, so that they can get finance for the company growth and expansion as well as operations. These funds are non-diluted.