HAYWARD, Calif. - Pulse Biosciences, Inc. (NASDAQ:PLSE), a bioelectric medicine company, has announced the record date for its upcoming rights offering. Shareholders of the company's common stock as of market close on May 16, 2024, will be eligible to participate.
The offering will allow each shareholder to acquire units, with each unit comprising one share of common stock and two warrants. The price per unit will be the lesser of $10 or the volume weighted average price of the common stock over the ten trading days up to and including the offering's expiration date, set for June 13, 2024. Should the offering be fully subscribed, Pulse Biosciences anticipates gross proceeds of $60 million, before deducting expenses.
Each warrant included in the units will be immediately exercisable upon the rights offering's completion and will expire five years thereafter. The company retains the right to redeem the warrants under specific conditions relating to the average price of the common stock.
In addition to the basic subscription rights, the offering includes an over-subscription privilege, allowing shareholders who fully exercise their basic subscription rights to purchase additional units, subject to certain terms and conditions.
The registration statement for the rights offering was filed with the U.S. Securities and Exchange Commission on April 3, 2024, and subsequently amended. However, it has not yet become effective, and the units, along with the securities they comprise, cannot be sold until the registration statement becomes effective.
Pulse Biosciences specializes in CellFX® Nanosecond Pulsed Field Ablation™ (nsPFA™) technology, which is being developed for various medical applications, including the treatment of atrial fibrillation.
This press release is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy any securities. The offering will not proceed until the registration statement is effective, and no sales will occur in jurisdictions where such an offering would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
InvestingPro Insights
Pulse Biosciences, Inc. is navigating a significant period with its upcoming rights offering, and investors are keeping a close eye on the company's financial health and market performance. Here are some insights from InvestingPro that could provide a deeper understanding of the company's current situation:
InvestingPro Data:
- The company's market capitalization stands at $419.71 million, reflecting investor valuation of the firm.
- Pulse Biosciences has a negative Price/Earnings (P/E) ratio of -8.59, which further adjusts to -9.94 for the last twelve months as of Q4 2023, indicating that the company has not been profitable during this period.
- The Price/Book ratio for the same period is high at 9.46, suggesting that the stock may be trading at a premium compared to the company's book value.
InvestingPro Tips:
- Pulse Biosciences holds more cash than debt on its balance sheet, which could provide a degree of financial flexibility and stability as it undertakes the rights offering.
- Analysts predict that the company will be profitable this year, a potential turnaround that could impact investor sentiment and the success of the offering.
Investors interested in a deeper dive into Pulse Biosciences' prospects can find additional insights on InvestingPro. There are 11 InvestingPro Tips available, which could help in making a more informed decision. To access these tips, visit: https://www.investing.com/pro/PLSE and take advantage of an exclusive offer: use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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