CapsoVision enters development agreement with Canon and announces partial IPO overallotment exercise

Published 18/07/2025, 22:30
CapsoVision enters development agreement with Canon and announces partial IPO overallotment exercise

CapsoVision , Inc. (NASDAQ:CV) disclosed this week that it has entered into a development agreement with Canon Inc. (TYO:7751) for the creation of complementary metal-oxide-semiconductor (CMOS) image sensor samples. According to a statement in a recent SEC filing, the agreement, signed Tuesday, is intended to support CapsoVision’s evaluation of new image sensors for potential use in future generations of its capsule endoscopies.

Under the terms of the agreement, CapsoVision will pay Canon approximately $4.1 million for development services. This includes an initial payment of $1 million in cash upon the agreement’s effectiveness, followed by a remaining development fee of about $3.1 million, which will be paid over time based on the delivery of a specified number of image sensors meeting agreed specifications. The companies also plan to enter a master purchase agreement for CapsoVision to buy a minimum quantity of sensors from Canon. The agreement remains in effect until terminated by either party under specified conditions, including breach of contract or other defined events.

The image sensors developed under this arrangement are not expected to be incorporated into CapsoVision’s current or next-generation capsule endoscopies but are intended for use in future products. CapsoVision currently offers the CapsoCam Plus capsule endoscope for small bowel use and has submitted an application for FDA 510(k) clearance for its first-generation CapsoCam Colon.

Separately, CapsoVision reported that on Wednesday, underwriters of its initial public offering exercised in part their overallotment option, purchasing an additional 129,978 shares of common stock. The company also issued warrants to purchase a total of 3,898 shares of common stock to the underwriters. The net proceeds from this transaction were approximately $600,000 after underwriting discounts and commissions. The warrants are exercisable at $6.25 per share, beginning in February 2026, and expire July 1, 2030. Restrictions apply to the transfer and sale of these warrants and the underlying shares for 180 days following the IPO closing.

All information is based on a statement in CapsoVision’s Form 8-K filing with the Securities and Exchange Commission.

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