ClearPoint Neuro Announces Closing of Public Offering of 2,127,660 Shares of Common Stock

Rhea-AI Summary

ClearPoint Neuro (Nasdaq: CLPT) has successfully closed a public stock offering, selling 2,127,660 shares, including 1,850,140 at $23.50 each and 277,520 following underwriters' options at $22.09. The net proceeds are approximately $46.8 million, which will support product development, R&D activities, and general corporate purposes. CEO Joe Burnett highlighted the strategic use of this capital to enhance the company’s capabilities in neuro-based therapies. B. Riley Securities managed the offering, with shares sold under an effective SEC registration statement.

Positive

• Net proceeds of approximately $46.8 million will fund product development and R&D activities.
• Strategic plan execution supported by new capital enhances operational control.

Negative

• Potential share dilution from the public offering may affect existing shareholders.

IRVINE, Calif., Feb. 23, 2021 (GLOBE NEWSWIRE) -- ClearPoint Neuro, Inc. (Nasdaq: CLPT) (the “Company”), a global therapy-enabling platform company providing navigation and delivery to the brain, today announced the closing of its previously disclosed public offering of common stock. The total number of shares of common stock sold was 2,127,660, composed of 1,850,140 shares of common stock initially offered at a public offering price of $23.50 per share and an additional 277,520 shares of common stock sold pursuant to the exercise of the underwriters' option to purchase additional shares at the price of $22.09 per share. The net proceeds to the Company from the offering, after deducting underwriting discounts and commissions and estimated offering expenses, are approximately $46.8 million. The Company will use the net proceeds from the offering to fund product development and research and development activities and the remainder for working capital and general corporate purposes.

“We are very pleased with the result and closing of this recent stock offering,” commented Joe Burnett, the Company’s President and Chief Executive Officer. “Our team has done a tremendous job accumulating the necessary partnerships we need across our portfolio of Neuro-based Biologics, Navigation and Therapy, the same way you would lay out all of your chess pieces before starting the match. The next two years is about putting all of those chess pieces in motion and executing against our strategic plan. Adding this new capital to our balance sheet increases our level of control and our capability to do just that.”

B. Riley Securities acted as book-running manager and Lake Street Capital Markets, LLC acted as co-manager for the offering.

The shares were offered pursuant to an effective shelf registration statement on Form S-3 (File No. 333-252346) filed with the Securities and Exchange Commission (the “SEC”). An electronic copy of the final prospectus supplement, dated February 18, 2021, and accompanying prospectus are available on the SEC website at www.sec.gov. Copies of the final prospectus supplement and accompanying prospectus may be obtained by visiting the SEC’s website, or from B. Riley Securities, Inc., Attention: Prospectus Department, 1300 North 17th Street, Suite 1300, Arlington, Virginia 22209, or by telephone at 703-312-9580 or by email at prospectuses@brileyfin.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About ClearPoint Neuro

ClearPoint Neuro’s mission is to improve and restore quality of life to patients and their families by enabling therapies for the most complex neurological disorders with pinpoint accuracy. Applications of the Company’s current product portfolio include deep-brain stimulation, laser ablation, biopsy, neuro-aspiration, and delivery of drugs, biologics, and gene therapy to the brain. The ClearPoint® Neuro Navigation System has FDA clearance, is CE-marked, and is installed in over 60 active clinical sites in the United States, Canada, and Europe. The Company’s SmartFlow® cannula is being used in partnership or evaluation with 25 individual biologics and drug delivery companies in various stages from preclinical research to late-stage regulatory trials. To date, more than 4,000 cases have been performed and supported by the Company’s field-based clinical specialist team which offers support and services for our partners. For more information, please visit www.clearpointneuro.com.

Forward-Looking Statements

Except for historical information contained herein, this press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. These statements are based on management’s current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements, including risks and uncertainties related to completion of the public offering on the anticipated terms or at all, market conditions and the satisfaction of customary closing conditions related to the public offering, and those factors described in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, and the Company’s Quarterly Reports on Form 10-Q for the three months ended March 31, 2020, June 30, 2020, and September 30, 2020, all of which have been filed with the Securities and Exchange Commission, and the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, which the Company intends to file with the Securities and Exchange Commission on or before March 31, 2021.

FAQ

What was the price and number of shares sold in the ClearPoint Neuro stock offering?

ClearPoint Neuro sold 2,127,660 shares, with 1,850,140 shares priced at $23.50 and 277,520 shares at $22.09.

How much capital did ClearPoint Neuro raise from the recent stock offering?

The company raised approximately $46.8 million from the offering after expenses.

What is ClearPoint Neuro's plan for the proceeds from the stock offering?

The proceeds will be used for product development, research and development, and general corporate purposes.

Who managed the ClearPoint Neuro public stock offering?

B. Riley Securities acted as book-running manager for the offering.

Where can I find the final prospectus for ClearPoint Neuro's stock offering?

The final prospectus is available on the SEC website and can also be requested from B. Riley Securities.