Pulse Biosciences, Inc. (NASDAQ:PLSE), a medical device company known for its novel and proprietary platform technology, has entered into a significant equity distribution agreement as per the recent 8-K filing with the U.S. Securities and Exchange Commission (SEC). On Monday, the Hayward, California-based company announced its arrangement with Canaccord Genuity LLC and Needham & Company, LLC to potentially offer and sell shares of common stock up to $60.0 million.
The agreement, which is not an obligation for the company to sell any shares, allows Pulse Biosciences to instruct the sales agents to sell shares at market prices or negotiated prices. Canaccord Genuity LLC and Needham & Company, LLC will receive a commission of up to 3.0% of the gross sales price per share sold under this arrangement.
This move follows the completion of Pulse Biosciences' rights offering in July 2024, which generated $60.0 million in cash proceeds. The company's financial position reflects cash and cash equivalents between $26.0 million and $26.5 million, excluding the proceeds from the rights offering.
Additionally, Pulse Biosciences provided preliminary financial results for the second quarter ended June 30, 2024, which included GAAP net losses estimated between $10.7 million and $12.7 million, and non-GAAP net losses estimated between $8.7 million and $9.7 million. The non-GAAP figures exclude stock-based compensation and depreciation and amortization expenses, offering an alternative view of the company's financial performance.
The equity distribution agreement is under the company’s effective registration statement on Form S-3 filed on March 28, 2024, and declared effective on April 8, 2024, along with a related registration statement filed on the same day as the agreement under Rule 462(b) of the Securities Act.
The article is based on an 8K filing.
In other recent news, Pulse Biosciences reported significant developments during their first quarter 2024 earnings call. The company highlighted FDA 510(k) clearance for their CellFX nsPFA energy delivery system and the successful treatment of 30 patients in Italy.
Furthermore, they announced an ongoing dialogue with the FDA regarding cardiac applications of their technology.
Despite an increase in total costs and expenses to $10.6 million, Pulse Biosciences maintained a robust cash position, with cash and cash equivalents totaling $34.9 million as of March 31, 2024.
The company also expects the CellFX percutaneous system to be operational in several prominent hospitals and clinics by year-end. These recent developments indicate progress in the commercialization of their CellFX nsPFA system and efforts to strengthen their financial position.
InvestingPro Insights
In light of the recent developments with Pulse Biosciences, Inc. (NASDAQ:PLSE), investors may find additional context through real-time data and insights. According to InvestingPro, Pulse Biosciences is anticipated to see net income growth this year, which aligns with the company's strategic maneuvers, such as the equity distribution agreement. The stock has experienced a significant return over the last week, with a 19.79% price total return, underscoring a strong short-term performance that may interest active traders.
The company's financial health is reflected in a market capitalization of approximately $1.14 billion, which is noteworthy for stakeholders evaluating the company's size and market position. Despite a negative P/E ratio of -22.4, indicating that the company has been operating at a loss, analysts predict that Pulse Biosciences will be profitable this year. Additionally, the stock is trading near its 52-week high, at 97.02% of the high, suggesting a bullish sentiment in the market.
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