HAYWARD, Calif. - Pulse Biosciences, Inc. (NASDAQ: NASDAQ:PLSE), a bioelectric medicine company, has announced a rights offering for its common stockholders, aiming to raise up to $60 million. The offering will grant existing shareholders the opportunity to purchase new units, each comprising one share of common stock and associated warrants, with terms set to be detailed in forthcoming SEC filings.
The rights offering will be available to all stockholders of record at the market close on a yet-to-be-determined date in April. The subscription price per unit will be the lesser of $10.00 or the volume-weighted average price of the company's common stock over the 10 trading days preceding the offering's expiration. The exercise price for each warrant will be 110% of the subscription price.
If fully subscribed at the initial price, Pulse Biosciences expects to receive gross proceeds of $60 million, less the offering's expenses. Moreover, the exercise of all warrants could potentially bring in another $66 million. The offering also includes an over-subscription right, which allows shareholders who fully exercise their basic subscription rights to purchase extra units, subject to certain conditions.
The company's Executive Chairman and majority stockholder, Robert Duggan, has expressed his support for the rights offering and plans to participate on the same terms as other investors.
Pulse Biosciences plans to register the rights offering with the SEC by filing a prospectus on Form S-3, which will be available on the SEC's website. This press release is not an offer to sell or a solicitation of an offer to buy securities, and the sale of these securities will not occur in jurisdictions where such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
The company's proprietary CellFX® Nanosecond Pulsed Field Ablation™ (nsPFA™) technology is being developed for various medical applications, including the treatment of atrial fibrillation.
The information provided here is based on a press release statement from Pulse Biosciences, Inc.
InvestingPro Insights
As Pulse Biosciences, Inc. (NASDAQ: PLSE) prepares for its rights offering, potential investors and current stockholders are closely watching the company's financial health and market performance.
According to InvestingPro data, Pulse Biosciences holds a market capitalization of approximately $479.75 million. Despite a challenging period with a one-year price total return of 211.11%, recent performance has seen significant volatility, with a one-month price total return of -17.32% and a six-month price total return of 92.66%.
The company's stock price has been quite volatile, as indicated by a 10.92% drop over the last week, and is currently trading at $8.4, which is 61.67% of its 52-week high. This volatility may influence investor sentiment, especially considering the upcoming rights offering.
InvestingPro Tips suggest that while Pulse Biosciences holds more cash than debt on its balance sheet, it has not been profitable over the last twelve months. However, analysts predict the company will be profitable this year, which could be a positive sign for future growth.
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