Evolus Announces Pricing of $50.0 Million Underwritten Offering of Common Stock

Rhea-AI Summary

Evolus, Inc. (EOLS) announces the pricing of its underwritten offering of 3,554,000 shares of common stock at $14.07 per share, aiming to raise approximately $50.0 million. The offering includes an option for underwriters to purchase additional shares. The offering is set to close soon.

Positive

• None.

Negative

• The underwritten offering may dilute existing shareholders' ownership as more shares are issued.
• The pricing of the offering at $14.07 per share might indicate a potential discount compared to market expectations.
• There is a possibility that the underwriters may not exercise their option to purchase additional shares, affecting the total proceeds for Evolus.

Insights

Financial Analyst

The recent announcement by Evolus, Inc. regarding its underwritten offering of shares is a pivotal development for the company's capital structure. The offering price, pegged to the closing market price, suggests a neutral view of the company's valuation from both the underwriters and the market. The gross proceeds of approximately $50 million represent a significant cash infusion which can be deployed towards strategic initiatives such as research and development, marketing, or debt reduction.

It's important to assess the dilution effect of the new shares on existing shareholders. The offering equates to an increase in the company's shares outstanding by approximately 10%, assuming the underwriters' option is fully exercised. Investors should consider the potential for earnings per share dilution, although the exact impact will depend on how effectively the raised capital is used to generate returns. Additionally, the 30-day option for underwriters to purchase additional shares provides a buffer against short-term market volatility and could potentially stabilize the stock price post-offering.

Long-term implications hinge on the company's ability to leverage the raised funds to accelerate growth and improve its competitive position. The capital raise could be a positive signal to the market, reflecting confidence in the company's prospects and possibly leading to a re-rating of the stock if the funds are utilized effectively.

Market Research Analyst

From a market perspective, Evolus' offering is indicative of the company's need for capital and its growth trajectory. The healthcare sector, particularly the biotechnology and pharmaceutical industries, is capital-intensive. Companies frequently resort to public offerings to raise funds without incurring debt. This is common practice and is generally well-received if the capital is used for value-creating activities.

Analyzing the company's past performance and market trends can provide context to the offering. If Evolus has a history of successful capital deployment, the market may respond favorably. Conversely, if there are concerns about the company's growth prospects or cash burn rate, the offering could be viewed with skepticism. Market reception will also be influenced by broader industry trends, such as regulatory changes or competitive pressures, which could affect Evolus' operations and, by extension, investor sentiment.

Investors and analysts will be monitoring the company's subsequent quarterly reports closely for signs of effective capital utilization. The impact on the stock will likely be correlated with the company's ability to demonstrate that the capital raised is contributing to tangible growth and profitability improvements.

Legal Expert

Regarding the legal aspects of the share offering, it is essential to ensure compliance with securities laws and regulations. The underwritten nature of the offering provides a layer of due diligence, as the underwriters are responsible for vetting the company's disclosures and financials. This can instill confidence among investors regarding the legitimacy of the offering and the accuracy of the information provided.

The granting of a 30-day option to underwriters is a standard practice and offers legal protection for both the company and the underwriters. It allows for additional capital to be raised if there is sufficient demand, while also mitigating the risk of stock price fluctuation immediately after the offering. The legal structures in place for this type of transaction are designed to balance the interests of the company, its current shareholders and potential investors.

Investors should be aware of the terms outlined in the offering prospectus, including the use of proceeds and any risk factors identified by the company. These disclosures are critical in assessing the legal and financial soundness of the offering and its implications for both short-term and long-term investment considerations.

NEWPORT BEACH, Calif.--(BUSINESS WIRE)-- Evolus, Inc. (Nasdaq: EOLS) announced today the pricing of its underwritten offering of 3,554,000 shares of its common stock at a underwritten offering price of $14.07 per share, which is equal to the closing price on Friday, March 8, 2024, before underwriting discounts and commissions. The gross proceeds from the offering to Evolus are expected to be approximately $50.0 million, before deducting underwriting discounts and commissions and offering expenses. In addition, Evolus has granted the underwriters a 30-day option to purchase up to an additional 533,100 shares of common stock at the underwritten offering price, less the underwriting discounts and commissions. The offering is expected to close on or about March 13, 2024, subject to satisfaction of customary closing conditions. All the shares in the offering are being sold by Evolus.

Evolus intends to use the net proceeds of the offering to continue to fund the growth of Jeuveau^®, launch activities for Evolysse™, potential business development opportunities and general corporate purposes.

Leerink Partners and Stifel are acting as joint bookrunning managers for the offering.

The offering was made pursuant to the prospectus accompanying Evolus’ registration statement on Form S-3 (File No. 333-270370), which was filed on March 8, 2023, amended on April 14, 2023 and June 7, 2023 and became effective on June 8, 2023. Copies of the accompanying prospectus may be obtained by visiting EDGAR on the U.S. Securities and Exchange Commission (“SEC”) website at www.sec.gov. A prospectus supplement will be filed with the SEC and will form a part of the effective registration statement. When available, copies of the prospectus supplement may be obtained from Leerink Partners LLC, Attention: Syndicate Department, 53 State Street, 40th Floor, Boston, MA 02109, by telephone at (800) 808-7525, ext. 6105, or by email at syndicate@leerink.com; or Stifel, Nicolaus & Company, Incorporated, Attention: Prospectus Department, One Montgomery Street, Suit 3700, San Francisco, CA 94104, by telephone at (415) 364-2720, or by email at syndprospectus@stifel.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 of these securities under the securities laws of any such state or jurisdiction.

About Evolus, Inc.

Evolus (Nasdaq: EOLS) is a global performance beauty company evolving the aesthetic neurotoxin market for the next generation of beauty consumers through its unique, customer-centric business model and innovative digital platform. Our mission is to become a global, multi-product aesthetics company based on our flagship product, Jeuveau^® (prabotulinumtoxinA-xvfs), the first and only neurotoxin dedicated exclusively to aesthetics and manufactured in a state-of-the-art facility using Hi-Pure™ technology. Evolus is expanding its product portfolio having entered into a definitive agreement to be the exclusive U.S. distributor of Evolysse™, and the exclusive distributor in Europe of Estyme^®, a line of unique dermal fillers currently in late-stage development.

Forward-Looking Statements

Statements in this press release that relate to future plans, events, prospects or performance are forward-looking statements as defined under 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, including statements that relate to Evolus’ public offering and statements containing the words “plans,” “expects,” “believes,” “strategy,” “opportunity,” “anticipates,” “outlook,” “designed,” or other forms of these words or similar expressions, although not all forward-looking statements contain these identifying words. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions and no assurance can be given that the public offering discussed above will be completed on the terms described. Completion of the public offering and the terms thereof are subject to numerous factors, many of which are beyond the control of Evolus, including, without limitation, market conditions, failure of customary closing conditions and the risk factors and other matters set forth in the final prospectus supplement and accompanying prospectus included in the registration statement. Except as required by law, Evolus undertakes no obligation to update or revise any forward-looking statements to reflect new information, changed circumstances or unanticipated events.

Jeuveau^® and Nuceiva^® are registered trademarks of Evolus, Inc.
Evolysse^™ is a trademark of Evolus, Inc.
Hi-Pure^™ is a trademark of Daewoong Pharmaceutical Co, Ltd.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240311488324/en/

Investor Contact:

Nareg Sagherian

Vice President, Head of Global Investor Relations and Corporate Communications

Tel: 248-202-9267

Email: ir@evolus.com

Media Contact:

Email: media@evolus.com

Source: Evolus

FAQ

What is the ticker symbol for Evolus, Inc.?

The ticker symbol for Evolus, Inc. is EOLS.

How many shares of common stock is Evolus offering in its underwritten offering?

Evolus is offering 3,554,000 shares of its common stock in the underwritten offering.

What is the underwritten offering price per share for Evolus?

The underwritten offering price per share for Evolus is $14.07.

How much is Evolus expecting to raise from the offering?

Evolus expects to raise approximately $50.0 million from the offering.

Is there an option for underwriters to purchase additional shares in the offering?

Yes, Evolus has granted the underwriters a 30-day option to purchase up to an additional 533,100 shares of common stock at the underwritten offering price.