HeartBeam Announces Exercise and Closing of Underwriter’s Over-Allotment Option for Public Offering of Common Stock

Rhea-AI Summary

HeartBeam (NASDAQ: BEAT) has successfully completed the over-allotment option of its public offering, with the underwriter purchasing an additional 864,033 shares at $1.70 per share, generating approximately $1.5 million in additional gross proceeds. This follows the firm commitment underwritten offering of 5,882,353 shares that closed on February 14, 2025.

The total offering now comprises 6,746,386 shares with gross proceeds of approximately $11.5 million. MDB Capital acted as the underwriter, with Paulson Investment Company participating as a selected dealer. The over-allotment option closed on February 25, 2025.

The company plans to utilize the net proceeds for:

• Commercial-readiness activities
• Investments in R&D, clinical, and regulatory projects
• Working capital
• General corporate purposes

Positive

• Successfully raised additional $1.5M through over-allotment option
• Total offering increased to $11.5M gross proceeds
• Funds allocated for commercial preparation and R&D advancement

Negative

• Dilution of existing shareholders through issuance of 6.75M new shares

Insights

Financial Analyst

HeartBeam's successful completion of its over-allotment option represents a significant capital strengthening event for this emerging cardiac technology company. The additional $1.5 million brings total gross proceeds to $11.5 million, a substantial sum for a company with a $69.5 million market capitalization.

The offering's structure reveals important insights: the 20% share dilution is considerable but not unusual for development-stage medical technology companies approaching commercialization phases. The 17% discount to current market price ($1.70 vs $2.04) is relatively modest for a secondary offering of this size, suggesting reasonable market confidence in HeartBeam's prospects.

Particularly noteworthy is the successful exercise of the over-allotment option, indicating strong institutional demand that exceeded initial expectations. For small-cap healthcare companies, such interest often signals sophisticated investors' positive assessment of commercial potential.

This capital infusion likely provides HeartBeam with a 12-18 month operational runway, important for navigating the capital-intensive final stages of commercialization preparation. The company's strategic allocation toward commercial-readiness activities, R&D, and regulatory projects aligns with typical pre-launch priorities in the medical device sector.

However, investors should consider several factors:

• The cardiac monitoring market is highly competitive with established players like iRhythm Technologies and AliveCor
• FDA clearance timelines remain uncertain despite preparation for commercialization
• Additional capital raises will likely be necessary before reaching profitability
• The company must demonstrate commercial adoption following regulatory clearance

This funding represents an important de-risking event in HeartBeam's development timeline, potentially accelerating their path to market while providing financial stability during this critical phase of corporate development. The successful raise demonstrates management's ability to secure necessary capital, though execution on regulatory milestones and commercial preparation will be the next critical validation points for investors.

• Additional gross proceeds of approximately $1.5 Million
• Follows successful closing of $10 million underwritten offering
• Funding is part of the Company’s strategic plan focusing on key growth milestones and preparation for U.S. commercialization

SANTA CLARA, Calif.--(BUSINESS WIRE)-- HeartBeam, Inc. (NASDAQ: BEAT), a medical technology company focused on transforming cardiac care by providing powerful personalized insights, today announced that the underwriter of its previously announced public offering of HeartBeam’s common stock has exercised its option to purchase an additional 864,033 shares at $1.70 per share, resulting in additional gross proceeds of approximately $1.5 million, before deducting the underwriting discount and commissions and offering expenses.

After giving effect to the exercise of the over-allotment option, the total number of shares sold by HeartBeam in the public offering increased to 6,746,386 shares and gross proceeds increased to approximately $11.5 million. The exercise of the over-allotment option closed February 25, 2025, and the 5,882,353 share firm commitment underwritten offering closed February 14, 2025.

MDB Capital acted as the underwriter for the offering and Paulson Investment Company LLC participated as a selected dealer.

The funding supports the Company’s strategic plan, focusing on key growth milestones and preparation for U.S. commercialization. The Company intends to use the net proceeds from the offering for commercial-readiness activities; investments into key R&D, clinical, and regulatory projects; working capital; and other general corporate purposes.

The offering was made only by means of a written prospectus and prospectus supplement that form a part of the registration statement. A final prospectus supplement and accompanying prospectus relating to the offering has been filed with the SEC and is available on the SEC’s website at www.sec.gov. A copy of the final prospectus supplement and accompanying prospectus may be obtained by contacting: MDB Capital, 14135 Midway Road, G-150, Addison, Texas 75001, by telephone at (945) 262-9010 or by email at community@mdb.com.

This press release does not constitute an offer to sell, or the solicitation of an offer to buy, the shares of common stock, nor will there be any sale of the shares of common stock in any state or other jurisdiction in which such offer, solicitation or sale is not permitted.

About HeartBeam, Inc.

HeartBeam, Inc. (NASDAQ: BEAT) is a medical technology company dedicated to transforming the detection and monitoring of critical cardiac conditions. The Company is creating the first ever cable-free synthesized 12-lead ECG capable of capturing the heart’s electrical signals from three distinct directions. This platform technology is designed for portable devices that can be used wherever the patient is to deliver actionable heart intelligence. Physicians will be able to identify cardiac health trends and acute conditions and direct patients to the appropriate care – all outside of a medical facility, thus redefining the future of cardiac health management. The Company holds 13 US and 4 international issued patents related to technology enablement. For additional information, visit HeartBeam.com.

Forward-Looking Statements

All statements in this release that are not based on historical fact are "forward-looking statements." While management has based any forward-looking statements included in this release on its current expectations, the information on which such expectations were based may change. Forward-looking statements involve inherent risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, as a result of various factors including those risks and uncertainties described in the Risk Factors and in Management’s Discussion and Analysis of Financial Condition and Results of Operations sections of our Forms 10-K, 10-Q and other reports filed with the SEC and available at www.sec.gov. We urge you to consider those risks and uncertainties in evaluating our forward-looking statements. We caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Except as otherwise required by the federal securities laws, we disclaim any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement contained herein (or elsewhere) to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250224693415/en/

Investor Relations Contact:

Chris Tyson 

Executive Vice President

MZ North America

Direct: 949-491-8235

BEAT@mzgroup.us

www.mzgroup.us

Media Contact:

media@heartbeam.com

Source: HeartBeam, Inc.

FAQ

How much did HeartBeam (BEAT) raise in total from its February 2025 public offering?

HeartBeam raised approximately $11.5 million in total gross proceeds, including $10 million from the initial offering and $1.5 million from the over-allotment option.

What was the price per share for HeartBeam's (BEAT) 2025 public offering?

The shares were priced at $1.70 per share for both the initial offering and the over-allotment option.

How many additional shares were sold through BEAT's over-allotment option?

The underwriter purchased an additional 864,033 shares through the over-allotment option.

What will HeartBeam use the proceeds from the 2025 public offering for?

The proceeds will fund commercial-readiness activities, R&D investments, clinical and regulatory projects, working capital, and general corporate purposes.

When did HeartBeam's over-allotment option close?

The over-allotment option closed on February 25, 2025.