Bullish indicating open at $55-$60, IPO prices at $37
MIAMI - InspireMD, Inc. (NASDAQ:NSPR) has secured approximately $58 million in combined gross proceeds through a private placement financing and warrant exercises, the company announced Thursday. According to InvestingPro data, this funding comes at a crucial time for the medical device company, which currently holds more cash than debt but has been rapidly burning through its cash reserves.
The funding includes $40.1 million from a private investment in public equity (PIPE) transaction led by current investors OrbiMed and Marshall Wace, with participation from new investors and board members. The company will issue about 16.6 million shares of common stock and pre-funded warrants at $2.42 per share. With a current market capitalization of $72.6 million and revenue of $7.03 million in the last twelve months, this financing significantly bolsters the company’s capital position. Analysts have set price targets ranging from $4 to $5, suggesting potential upside from current levels. Get more detailed analysis with InvestingPro’s comprehensive research report, one of 1,400+ available for US equities.
An additional $17.9 million came from warrant exercises triggered by the recent U.S. Food and Drug Administration (FDA) premarket application approval of the company’s CGuard Prime carotid stent system. These warrants were part of a milestone-based financing announced in May 2023.
"This transaction accomplished several key objectives to fund our growth plan as we launch CGuard Prime into the U.S. market," said Marvin Slosman, CEO of InspireMD, in the press release statement.
The company plans to use the proceeds for operations including sales and marketing, research and development, and working capital.
BofA Securities served as the exclusive placement agent for the PIPE transaction with institutional investors. The closing is expected to occur by August 1, subject to customary conditions.
The securities offered in the private placement were issued under Section 4(a)(2) of the Securities Act of 1933 and have not been registered under the Act or applicable state securities laws.
InspireMD develops carotid stent systems utilizing its proprietary MicroNet mesh technology for stroke prevention. While the company maintains strong liquidity with a current ratio of 4.36, InvestingPro analysis indicates the company faces near-term profitability challenges, with analysts not anticipating positive earnings this year. InvestingPro subscribers have access to 7 additional key insights about NSPR’s financial health and market position.
In other recent news, InspireMD has launched its CGuard Prime carotid stent system in the United States after receiving premarket application approval from the U.S. Food and Drug Administration. This approval follows the results of the C-GUARDIANS pivotal trial, which involved 316 patients across 24 sites in the United States and Europe. The CGuard Prime system is designed to minimize embolism risk by trapping potential emboli against arterial walls. Additionally, InspireMD received CE Mark approval for the CGuard Prime stent system under the European Medical Device Regulation. The company has also announced the appointment of Michael Lawless as its new Chief Financial Officer, who will join on or before June 30, 2025. Lawless brings extensive experience from his previous roles, including his tenure as CFO of Lifeward and the Life Sciences unit of Brooks Automation. These developments mark significant progress for InspireMD in both product expansion and leadership.
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