- The stock price of Senseonics Holdings Inc (NYSEAMERICAN: SENS) has increased by over 25% pre-market. This is why it happened.
The stock price of Senseonics Holdings Inc (NYSEAMERICAN: SENS) — a medical technology company focused on the development and commercialization of a long-term, implantable continuous glucose monitoring (CGM) system for people with diabetes — has increased by over 25% pre-market. Investors are responding to Senseonics Holdings announcing that due to demand, the underwriter has agreed to increase the size of the previously announced offering and purchase on a firm commitment basis 51,948,052 shares of common stock of the company at a public offering price of $1.925 per share, less underwriting discounts and commissions.
And the company also has granted the underwriter a 30-day option to purchase up to an additional 7,792,207 shares of common stock at the public offering price, less underwriting discounts and commissions. The offering is expected to close on or about January 26, 2021, subject to customary closing conditions.
The gross proceeds of the offering are expected to be approximately $100 million, prior to deducting underwriting discounts and commissions and estimated offering expenses and excluding the exercise of the underwriter’s option to purchase additional shares. And the company intends to use the net proceeds from this offering for general corporate purposes, including product development, focused on working to complete clinical development, secure regulatory approval and support anticipated commercial launch of the 365-day product, supporting the collaboration with Ascensia Diabetes Care, and funding working capital and capital expenditures.
H.C. Wainwright & Co. is acting as the sole book-running manager for the offering.
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.
