NeuroPace to repurchase shares from major holder

MOUNTAIN VIEW, CA - NeuroPace Inc (NASDAQ:NPCE), a medical device company whose stock has seen significant volatility with a 78% surge over the past six months but a recent 8% decline in the past week, announced on Thursday that it has entered into an agreement to repurchase shares from one of its significant shareholders, KCK Ltd.

This transaction is closely tied to the company's concurrent public equity offering, which was also disclosed on Thursday. According to InvestingPro data, the company maintains a healthy current ratio of 5.59, indicating strong short-term liquidity.

According to the details of the agreement, NeuroPace will buy back all of KCK's common stock holdings in a private transaction. The repurchase price per share will match the price at which shares are sold to underwriters in the equity offering. The shares acquired in the repurchase are set to become authorized but unissued stock.

Before the announcement of the equity offering and the planned stock repurchase, KCK owned approximately 17.5% of NeuroPace's outstanding common stock, based on the preliminary share count as of December 31, 2024.

With a market capitalization of approximately $357 million, NeuroPace operates with a moderate debt level, as revealed in InvestingPro's comprehensive analysis, which includes over 30 key financial metrics and exclusive insights. The closing of the repurchase is slated for at least two business days after the equity offering concludes, subject to customary closing conditions and the successful completion of the offering.

NeuroPace's audit committee, comprised of independent directors not affiliated with KCK, reviewed and approved the repurchase arrangement. Additionally, a pricing committee formed by the board of directors endorsed the transaction.

The company cautions that forward-looking statements regarding the completion of the equity offering and the stock repurchase are subject to market conditions and other factors. There is no guarantee that the transactions will be finalized as described or at all.

With the company's next earnings report scheduled for March 5, 2025, investors seeking deeper insights can access the full financial health analysis and Fair Value estimates through InvestingPro's detailed research reports, available for over 1,400 US stocks.

This news is based on the latest SEC filing by NeuroPace Inc.

In other recent news, NeuroPace, Inc. has announced plans to conduct a public offering of $65 million in common stock shares. The proceeds are intended to repurchase shares from significant stockholder KCK Ltd. and support general corporate needs, including clinical trials, research and development, administrative costs, debt reduction, and working capital. The offering is managed by J.P. Morgan, Cantor, Wells Fargo (NYSE:WFC) Securities, and Leerink Partners, with Lake Street Capital Markets as the lead manager.

On the analyst front, UBS has started coverage on NeuroPace with a Buy rating, highlighting the company's RNS technology and forecasting a compound annual growth rate (CAGR) of approximately 22% from 2024 to 2029.

Similarly, JPMorgan has maintained its Overweight rating on the company, increasing the price target to $14.00, and projects a CAGR of over 15% through 2029. These recent developments reflect the ongoing growth and market expansion of NeuroPace.

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