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MINNEAPOLIS - Nuwellis, Inc. (NASDAQ: NUWE), a medical device company with a market capitalization of $1.76 million, has announced the pricing of its latest public offering. The offering includes 406,755 shares of common stock and pre-funded warrants to purchase an additional 14,085,998 shares, along with Series A and Series B warrants to purchase up to 43,478,259 and 14,492,753 shares respectively. According to InvestingPro data, the company’s stock has declined over 94% in the past year, though current analysis suggests the stock may be undervalued.
The set public offering price is $0.30 for each share of common stock with accompanying warrants, and $0.2999 for each pre-funded warrant with accompanying warrants. The company anticipates using the net proceeds for working capital, general corporate needs, and potential acquisitions. InvestingPro analysis indicates the company is quickly burning through cash, though it maintains a healthy current ratio of 2.23, suggesting adequate short-term liquidity.
Pre-funded warrants are exercisable immediately at $0.0001 each and remain so until used in full. Series A and Series B warrants, priced at $0.30, will be exercisable for five years post-stockholder approval, as mandated by Nasdaq regulations. Notably, Series A Warrants include a one-time exercise price adjustment in case of a reverse stock split, while Series B Warrants offer a zero cash exercise option, enabling holders to acquire shares without additional cash payment to the company.
Ladenburg Thalmann & Co. Inc. is the sole book-running manager for the offering, which is expected to close tomorrow, subject to standard closing conditions. These securities are issued per a registration statement on Form S-1, declared effective by the SEC today.
Nuwellis specializes in treating patients with fluid overload through its Aquadex SmartFlow® system, which is used for ultrafiltration therapy. The company’s headquarters are in Minneapolis, with a subsidiary in Ireland. With annual revenue of $8.79 million and a gross margin of nearly 65%, the company shows strong product economics despite current challenges. For deeper insights into Nuwellis’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.
This offering announcement contains forward-looking statements, including the anticipated closing date and the intended use of the net proceeds. These are subject to various risks and uncertainties and are based on current expectations. The company does not undertake to update any forward-looking statements publicly. This article is based on a press release statement from Nuwellis, Inc.
In other recent news, Nuwellis Inc. reported a 3% increase in revenue for the first quarter of 2025, reaching $1.9 million. Despite this growth, the company faced a net loss of $3 million, or $0.69 per share. The gross margin decreased to 56% from the previous year’s 64.1%, while operating expenses saw a significant reduction of 31%. Nuwellis maintains a strong financial position with $2.6 million in cash reserves and no outstanding debt. The company is also continuing its clinical trials, with plans to initiate the Vivian trial by late 2025 or early 2026. Additionally, Nuwellis is working with hospitals to expand its outpatient clinic presence, aiming to boost revenue in the coming quarters. The Journal of the American College of Cardiology Heart Failure published findings supporting the effectiveness of Nuwellis’s Aquadex therapy, which could enhance its market position.
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