ProPhase Labs Inc. said its tender offer to buy up to 1.7 million common shares priced at $2.30 apiece was oversubscribed.

Based on the preliminary count, 2,072,952 common shares were properly tendered and not withdrawn, including 67,361 shares that were tendered through notice of guaranteed delivery.

The company expects to accept for payment 1,948,569 shares properly tendered and not withdrawn before the expiration date, at a cost of about $4.5 million. The shares expected to be purchased include 1.7 million initially offered shares to purchase for about $3.9 million and 248,569 additional shares that the company has elected to purchase for about $572,000.

The shares expected to be purchased represent about 15.0% of the company's common stock issued and outstanding as of Dec. 18.

ProPhase expects only to accept for purchase, on a pro rata basis, about 94.0% of the shares validly tendered.

MacKenzie Partners Inc. is the information agent for the offer, and American Stock Transfer & Trust Co. LLC is the depositary.