CLEARWATER, Fla. - Apyx Medical (NASDAQ:APYX) Corporation (NASDAQ:APYX), a developer of helium plasma and radiofrequency technology, has completed a registered direct offering, raising approximately $7 million before deducting offering expenses. The offering, which closed on Friday, involved the sale of 3 million shares of common stock at $1.18 each and pre-funded warrants to purchase up to 2,934,690 shares at $1.179 per warrant.
The purchase price was based on the average closing price of Apyx Medical (TASE:PMCN)'s common stock on the Nasdaq Global Select Market for the five trading days preceding the close on November 7, 2024. The company, which did not employ a placement agent for the transaction, intends to use the proceeds for working capital and other general corporate purposes.
Apyx Medical's offering was conducted pursuant to an effective shelf registration statement previously filed with the U.S. Securities and Exchange Commission and declared effective on December 2, 2022. The securities were offered only by means of a prospectus supplement and accompanying prospectus forming part of the registration statement.
The company specializes in products such as Renuvion® in the cosmetic surgery market and J-Plasma® in the hospital surgical market, with more than 90 clinical documents supporting the effectiveness of these technologies. Apyx Medical also engages in OEM agreements leveraging its expertise in unique waveforms.
This financial move comes without any assurances from the company regarding future regulatory approvals or performance. Apyx Medical's forward-looking statements are subject to risks, including regulatory environments, supply chain disruptions, and general economic conditions, as detailed in their filings with the SEC.
The information about this financial transaction is based on a press release statement from Apyx Medical Corporation.
In other recent news, Apyx Medical Corporation has reported mixed financial results for the second quarter of fiscal year 2024. Despite a 10% decrease in total revenue to $12.1 million, the company saw a significant rise in sales of its OEM products. The company's gross profit fell by 19% to $7.5 million and the loss from operations rose by 349% to $5.5 million. The net loss attributable to stockholders expanded to $6.6 million from $1 million year-over-year. The company's financial guidance for 2024 projects total revenue in the range of $50.6 million to $52.1 million and a net loss of approximately $24.5 million to $23.5 million.
In analyst news, BTIG initiated coverage on Apyx Medical with a Neutral rating, citing the company's involvement in the cosmetic surgery market through its Renuvion platform. However, the firm remains cautious due to recent contractions in demand for aesthetic capital equipment and procedures, as well as Apyx Medical's current lack of profitability and upcoming financial hurdles.
Lastly, Apyx Medical is undertaking direct-to-consumer initiatives and a giveback program called "Renewing Lives," maintaining a focus on controlling costs and optimizing cash efficiency amid recent developments.
InvestingPro Insights
Apyx Medical's recent $7 million registered direct offering comes at a critical time for the company, as InvestingPro data reveals some challenging financial metrics. With a market capitalization of $42.27 million, Apyx is operating in a tight financial space. The company's revenue for the last twelve months as of Q2 2023 stood at $49.03 million, with a modest growth of 3.36% over the same period.
InvestingPro Tips highlight that Apyx is "quickly burning through cash" and "analysts do not anticipate the company will be profitable this year." These insights align with the company's decision to raise additional capital through the offering, likely to bolster its working capital and support ongoing operations.
Despite these challenges, there are some positive indicators. An InvestingPro Tip notes that Apyx "operates with a moderate level of debt," which could provide some financial flexibility. Additionally, the company has seen a "strong return over the last three months," with InvestingPro data showing a 19.61% price total return over that period.
The recent capital raise could be crucial for Apyx's future, especially considering its negative operating income of -$22.32 million in the last twelve months. This move may help the company navigate its current financial situation and potentially improve its market position in the medical technology sector.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights on Apyx Medical. In fact, there are 7 more InvestingPro Tips available for APYX, providing a deeper understanding of the company's financial health and market position.
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