Heska Announces Proposed Public Offering of Common Stock

Rhea-AI Summary

Heska Corporation (NASDAQ: HSKA) has initiated an underwritten public offering of $150 million in common stock, with plans to provide underwriters a 30-day option for an additional 15% of shares sold. The funds will be used for general corporate purposes, including working capital, product development, and potential acquisitions, although no specific agreements are in place. The offering is subject to market conditions, and details will be filed with the SEC. J.P. Morgan and Piper Sandler & Co. are the joint book-running managers.

Positive

• Intends to use proceeds for working capital and product development.
• Potential for funding future acquisitions, enhancing growth opportunities.

Negative

• Offering may lead to shareholder dilution.
• Uncertain market conditions may affect the completion of the offering.

LOVELAND, Colo., March 1, 2021 /PRNewswire/ -- Heska Corporation (NASDAQ: HSKA - News; "Heska" or the "Company"), a leading provider of advanced veterinary diagnostic and specialty products, today announced that it has commenced an underwritten public offering of $150 million of shares of its common stock.  In addition, Heska expects to grant the underwriters a 30-day option to purchase up to an additional 15% of the shares of common stock sold in the offering at the public offering price, less the underwriting discounts and commissions.  All of the shares of common stock to be sold in the offering will be offered by Heska.  The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

Heska intends to use the net proceeds from the offering for general corporate purposes, including working capital, further development and potential commercialization of current and future product initiatives, collaborations, and capital expenditures.  Heska may also use a portion of the net proceeds of this offering to fund possible investments in or acquisitions of complementary businesses, products or technologies, or to repay indebtedness.  However, it has no agreements or commitments to do so.

J.P. Morgan and Piper Sandler & Co. are acting as joint book-running managers for the offering.

The common stock will be offered and sold pursuant to an effective shelf registration statement on Form S-3 filed by Heska with the Securities and Exchange Commission ("SEC") and only by means of a prospectus supplement and accompanying prospectus included in the registration statement.  A preliminary prospectus supplement related to the offering will be filed with the SEC.  Prospective investors should read the preliminary prospectus supplement, when available, and the accompanying prospectus and other documents Heska has filed with the SEC for more complete information about Heska and the offering.  These documents are available at no charge by visiting the SEC's website at http://www.sec.gov.  Alternatively, copies of the preliminary prospectus supplement, when available, and the accompanying prospectus may be obtained by contacting J.P. Morgan Securities LLC, Attention: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at (866) 803-9204 or by email at prospectus-eq_fi@jpmchase.com or by contacting Piper Sandler & Co., Attention: Prospectus Department, 800 Nicollet Mall, J12S03, Minneapolis, MN 55402, by telephone at (800) 747-3924, or by email at prospectus@psc.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 Heska
Heska Corporation (NASDAQ: HSKA) manufactures, develops and sells advanced veterinary diagnostic and specialty healthcare products through its two business segments: North America and International. Both segments include Point of Care Lab testing instruments and consumables, digital imaging products, software and services, data services, allergy testing and immunotherapy, and single-use offerings such as in-clinic diagnostic tests and heartworm preventive products. The North America segment also includes private label vaccine and pharmaceutical production under third-party agreements and channels, primarily for herd animal health.

Forward Looking Statements
Except for historical information, certain statements in this press release, including statements relating to Heska's expectations regarding the completion, timing and use of proceeds of the proposed public offering, are forward-looking in nature and are subject to risks, uncertainties and assumptions about us, including, without limitation, risks and uncertainties related to market conditions and the satisfaction of closing conditions related to the proposed public offering.  Such forward-looking statements involve substantial risks and uncertainties that relate to future events and the actual results could differ significantly from those expressed or implied by the forward-looking statements.  Any forward-looking statements are based on Heska's current expectations, estimates and assumptions regarding future events and are applicable only as of the dates of such statements.  Heska makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances that may change.  For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to Heska's business in general, please refer to the "Risk Factors" sections in Heska's preliminary prospectus supplement to be filed with the SEC, including the documents incorporated by reference therein, which includes its Annual Report on Form 10-K filed with the SEC on February 26, 2021.

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SOURCE Heska Corporation

FAQ

What is Heska Corporation's recent public offering amount?

Heska Corporation announced a public offering of $150 million in common stock.

What will Heska do with the proceeds from the stock offering?

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

Who is managing Heska's public offering?

J.P. Morgan and Piper Sandler & Co. are acting as joint book-running managers.

Is there a risk of dilution for Heska shareholders due to the offering?

Yes, the offering may lead to shareholder dilution.

What percentage of additional shares can underwriters purchase in Heska's offering?

Underwriters have a 30-day option to purchase up to an additional 15% of the shares sold.