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Outset Medical (TASE:BLWV), Inc. (NASDAQ:OM), a medical device company currently valued at approximately $31 million, has filed a Certificate of Correction with the Delaware Secretary of State to rectify a clerical error in its preferred stock documentation, the company disclosed in a recent 8-K filing with the U.S. Securities and Exchange Commission. According to InvestingPro data, the stock has experienced significant volatility, with its price declining nearly 79% over the past year.
On Monday, Outset Medical amended its Certificate of Designation for its Series A Non-Voting Convertible Preferred Stock to correct a mathematical formula that mistakenly interchanged the terms "numerator" and "denominator." This error was identified as a scrivener’s error, which is a mistake made in the typing or writing of a document.
Following stockholder approval on Sunday, March 5, 2025, Outset Medical issued 19,432 shares of the Series A Preferred Stock to certain directors, officers, and employees. Subsequently, on Monday, 842,753 shares of the Series A Preferred Stock were converted into 210,688,250 shares of common stock. This conversion has significantly increased the number of common shares in circulation, bringing the total to 265,493,926 shares. After the conversion, 20,587 shares of the Series A Preferred Stock remain outstanding. InvestingPro analysis indicates the company maintains strong liquidity with a current ratio of 5.69, suggesting robust ability to meet short-term obligations.
The adjustment in share distribution and the correction of the clerical error come after the company’s special meeting of stockholders, where the issuance of the Series A Preferred Stock and the subsequent conversion into common stock were approved.
This announcement is based on a press release statement and provides a factual update on the corporate actions of Outset Medical, a company incorporated in Delaware and operating in the electromedical and electrotherapeutic apparatus industry. The company’s main offices are located in San Jose, California. InvestingPro research reveals additional insights about Outset Medical’s financial health and market position, with 12 more exclusive ProTips available for subscribers, along with comprehensive analysis in the Pro Research Report.
In other recent news, Outset Medical Inc . reported its fourth-quarter 2024 earnings, showcasing better-than-expected results. The company achieved an earnings per share (EPS) of -$0.37, surpassing analyst predictions of -$0.43. Revenue for the quarter was $29.5 million, slightly above forecasts, despite a year-over-year decline. This performance is attributed to effective cost management and operational improvements, including significant debt reduction and increased recurring revenue. Looking ahead, Outset Medical anticipates revenue for 2025 to be between $115 million and $125 million, with a focus on growing its installed base and recurring revenue by 10%. The company aims to maintain its gross margin in the high 30% range and reduce operating expenses to approximately $90 million. Additionally, Outset Medical has secured $172.7 million in equity financing, which will help support its financial stability and growth initiatives. The company also successfully reduced its outstanding debt from $200 million to $100 million, providing a stronger financial position moving forward.
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