ClearPoint Neuro Announces Pricing of Public Offering of 2,307,694 Shares of Common Stock

Rhea-AI Summary

ClearPoint Neuro, Inc. (CLPT) announces the pricing of its underwritten public offering of 2,307,694 shares of common stock at $6.50 per share, with an option for additional shares. The offering aims to raise funds for general corporate purposes, including research, acquisitions, or debt repayment.

Insights

Financial Analyst

The public offering by ClearPoint Neuro, Inc. represents a strategic move to raise capital for the company. The pricing of over 2.3 million shares at $6.50 each indicates a substantial influx of funds, assuming the offering is fully subscribed. The additional option for underwriters to purchase up to 346,154 shares could provide further financial flexibility. This capital injection can be pivotal in bolstering the company's financial position, enabling it to pursue growth initiatives such as R&D, acquisitions, or debt repayment.

An important aspect to consider is the offer price relative to the company's current stock performance. If the price is at a discount, it could potentially dilute existing shareholders' equity but may also attract new investors. On the other hand, if the price is at a premium, it reflects investor confidence. The market's response to this offering will be a critical indicator of investor sentiment towards the company's growth prospects.

Market Research Analyst

ClearPoint Neuro's focus on navigation technologies for the brain and spine places it within a niche but growing segment of the medical device industry. The intended use of proceeds for R&D and potential acquisitions suggests an aggressive strategy to expand its product portfolio and market presence. The success of such an offering could signal market confidence in the company's technology and future roadmap.

Investors will be keen to monitor how the raised capital is allocated, particularly towards acquisitions. The ability of ClearPoint Neuro to successfully identify and integrate complementary businesses or technologies could significantly enhance its competitive edge. A successful acquisition can lead to synergies, expanded market reach and ultimately, shareholder value creation.

Legal Expert

The mention of a shelf registration statement becoming effective is a key legal aspect of this offering. It indicates that ClearPoint Neuro had previously filed the necessary documentation with the SEC, allowing them to issue securities in a more expedited manner. This preparedness can be advantageous in capitalizing on favorable market conditions quickly.

Investors should be aware that the effectiveness of a shelf registration does not guarantee the success of the offering; it simply denotes regulatory compliance. Due diligence on the prospectus and related supplement is essential for a clear understanding of the risks and potential of the investment.

SOLANA BEACH, Calif., Feb. 29, 2024 (GLOBE NEWSWIRE) -- ClearPoint Neuro, Inc. (Nasdaq: CLPT) (the “Company”), a global device, cell, and gene therapy-enabling company offering precise navigation to the brain and spine, announced today the pricing of its underwritten public offering of 2,307,694 shares of its common stock at a price to the public of $6.50 per share. In addition, the Company has granted the underwriter a 30-day option to purchase up to an additional 346,154 shares of its common stock at the public offering price less underwriting discounts and commissions. All the shares are being offered by the Company. The offering is expected to close on March 4, 2024, subject to customary closing conditions.

The Company intends to use the net proceeds from this offering for general corporate purposes, which may include research and development expenditures, potential acquisitions of or investments in business, products and technologies that complement the Company’s business, or repayment of the Company’s indebtedness.

Lake Street Capital Markets, LLC is acting as the sole book-running manager for the proposed offering.

A shelf registration statement on Form S-3 relating to the securities being sold in this offering was declared effective by the Securities and Exchange Commission (the “SEC”) on November 20, 2023. Before you invest, you should read the prospectus in the registration statement and related prospectus supplement for more complete information about the Company and this offering. An electronic copy of the preliminary prospectus supplement and accompanying prospectus relating to the offering are available on the SEC website at www.sec.gov. Copies of the final prospectus supplement and accompanying prospectus relating to the offering may be obtained, when available, by visiting the SEC’s website, or from Lake Street Capital Markets, LLC, Attn: Syndicate Department, 920 Second Avenue South, Suite 700, Minneapolis, MN 55402, by calling (612) 326-1305.

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 is a device, cell, and gene therapy-enabling company offering precise navigation to the brain and spine. The Company uniquely provides both established clinical products as well as preclinical development services for controlled drug and device delivery. The Company’s flagship product, the ClearPoint Neuro Navigation System, has FDA clearance and is CE-marked. ClearPoint Neuro is engaged with healthcare and research centers in North America, Europe, Asia, and South America. The Company is also partnered with the most innovative pharmaceutical/biotech companies, academic centers, and contract research organizations, providing solutions for direct CNS delivery of therapeutics in pre-clinical studies and clinical trials worldwide. To date, thousands of procedures have been performed and supported by the Company’s field-based clinical specialist team, which offers support and services to our customers and partners worldwide. 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. These forward-looking statements include, but are not limited to, statements about the Company’s expectations regarding the completion, terms, size, and timing of the public offering, and with respect to granting the underwriters a 30-day option to purchase additional shares. 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, 2022, and the Company’s Quarterly Reports on Form 10-Q for the three months ended March 31, 2023, June 30, 2023, and September 30, 2023, all of which have been filed with the SEC, and the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, which the Company intends to file with the SEC on or before March 31, 2024.

FAQ

How many shares of common stock did ClearPoint Neuro, Inc. (CLPT) offer in the public offering?

ClearPoint Neuro, Inc. (CLPT) offered 2,307,694 shares of common stock in the public offering.

At what price per share did ClearPoint Neuro, Inc. (CLPT) price its public offering?

ClearPoint Neuro, Inc. (CLPT) priced its public offering at $6.50 per share.

What is the role of Lake Street Capital Markets, LLC in ClearPoint Neuro, Inc.'s (CLPT) offering?

Lake Street Capital Markets, LLC is acting as the sole book-running manager for ClearPoint Neuro, Inc.'s (CLPT) proposed offering.

When is the expected closing date for ClearPoint Neuro, Inc.'s (CLPT) public offering?

The expected closing date for ClearPoint Neuro, Inc.'s (CLPT) public offering is March 4, 2024, subject to customary closing conditions.

What are the intended uses of the net proceeds from ClearPoint Neuro, Inc.'s (CLPT) public offering?

The net proceeds from ClearPoint Neuro, Inc.'s (CLPT) public offering will be used for general corporate purposes, including research and development expenditures, potential acquisitions, or repayment of indebtedness.