HAYWARD, Calif. - Pulse Biosciences, Inc. (NASDAQ:PLSE), a bioelectric medicine company, has announced the preliminary results of its recently concluded rights offering. The offering, which closed on June 26, 2024, was oversubscribed with commitments of about $83 million, surpassing the company's target of $60 million.
The offering's final subscription price was set at $10.00 per unit, with each unit comprising one share of common stock and two warrants. These warrants are immediately exercisable at $11.00 per whole share and will expire five years from the rights offering's completion date. The company anticipates additional proceeds of up to $66 million if all warrants are exercised.
Pulse Biosciences specializes in the development of its proprietary CellFX® Nanosecond Pulsed Field Ablation™ (nsPFA™) technology, which is designed to non-thermally clear cells while sparing adjacent non-cellular tissue. The technology is being developed for various medical applications, including the treatment of atrial fibrillation.
The rights offering attracted over 800 accounts, including participation from the company's Executive Chairman, Robert Duggan. Due to the oversubscription, units will be allocated proportionately among rights holders who exercised their over-subscription right, as detailed in the offering's prospectus. Any excess funds from oversubscriptions will be returned to investors by Broadridge Corporate Issuer Solutions, Inc., the subscription agent.
The company's common stock and warrants will be issued separately upon the closing of the rights offering, with the distribution of shares and warrants, as well as the sale proceeds, to follow promptly.
This rights offering follows the effectiveness of Pulse Biosciences' registration statement on Form S-3, as amended, which was filed with the Securities and Exchange Commission (SEC) and became effective on May 31, 2024.
The information reported is based on a press release statement from Pulse Biosciences, Inc. and does not include any promotional content or endorsement of the company's claims.
In other recent news, Pulse Biosciences has made notable strides in the development and commercialization of their CellFX nsPFA energy delivery system.
The company reported FDA 510(k) clearance for their non-cardiac percutaneous system, the successful treatment of 30 patients in Italy, and ongoing discussions with the FDA concerning their cardiac applications. Moreover, a rights offering to raise up to $60 million was announced, aimed at strengthening the company's balance sheet.
Financially, Pulse Biosciences disclosed an increase in total costs and expenses to $10.6 million, with cash and cash equivalents totaling $34.9 million as of March 31, 2024. The company also noted high interest from physicians at major institutions for the CellFX system since its FDA clearance.
Looking ahead, Pulse Biosciences expects the CellFX percutaneous system to be used in prominent hospitals and clinics by year-end. Furthermore, the company is set to present at the Heart Rhythm Society meeting, focusing on their nanosecond PFA technology. However, the earnings call did not specify revenue figures or specific financial performance metrics aside from costs and cash reserves.
InvestingPro Insights
In the wake of Pulse Biosciences, Inc.'s (NASDAQ:PLSE) successful rights offering, investors may be curious about the company's financial health and market performance. According to InvestingPro data, Pulse Biosciences currently holds a market capitalization of approximately $608.03 million. Despite the optimism surrounding the oversubscribed rights offering, the company's Price/Earnings (P/E) ratio stands at -13.54, reflecting investor concerns over profitability.
InvestingPro Tips suggest that while the company is not currently profitable, with a negative operating income of $44.63 million in the last twelve months as of Q1 2024, analysts predict that net income is expected to grow this year.
Moreover, Pulse Biosciences has demonstrated a strong return over the last year, with a 67.07% increase in the 1 Year Price Total Return as of mid-2024. However, the stock has experienced significant volatility, with a 1 Month Price Total Return of -17.34%, indicating the potential for short-term risk.
For investors considering a deeper dive into Pulse Biosciences' financials and future prospects, there are additional InvestingPro Tips available, including insights on the company's shareholder yield and debt levels. To access these tips and gain a comprehensive understanding of Pulse Biosciences' investment potential, visit https://www.investing.com/pro/PLSE and use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription. Currently, there are 12 more tips listed on InvestingPro that can guide your investment decisions regarding Pulse Biosciences.
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