iCAD Announces Pricing of $22.0 Million Public Offering of Common Stock

Rhea-AI Summary

iCAD, Inc. (NASDAQ: ICAD) announced a public offering of 1,222,222 shares at $18.00 each, aiming for gross proceeds of approximately $22 million. The offering's closing is anticipated around March 5, 2021, pending customary conditions. Underwriters, led by Guggenheim Securities, have a 30-day option for an additional 171,516 shares. Proceeds will be used for working capital and corporate purposes. The offering is part of an effective shelf registration statement with the SEC, which allows for streamlined capital raises.

Positive

• Expected gross proceeds of approximately $22 million enhance financial position.
• Proceeds will be allocated for working capital and corporate purposes, supporting growth initiatives.

Negative

• Potential dilution of existing shares due to new offering.
• Market uncertainty regarding the performance post-offering could impact stock price.

NASHUA, N.H., March 03, 2021 (GLOBE NEWSWIRE) -- iCAD, Inc. (the “Company”, NASDAQ: ICAD), a global medical technology leader providing innovative cancer detection and therapy solutions, today announced the pricing of an underwritten public offering of 1,222,222 shares of its common stock at a public offering price of $18.00 per share. The gross proceeds of the offering to the Company are expected to be approximately $22.0 million, before deducting the underwriting discounts and commissions and other estimated offering expenses. In addition, the Company granted the underwriters a thirty-day option to purchase up to an additional 171,516 shares of common stock at the public offering price, less underwriting discounts and commissions.

The closing of the offering is expected to occur on or about March 5, 2021, subject to the satisfaction of customary closing conditions.

Guggenheim Securities is acting as sole book-running manager for the offering. JMP Securities, Craig-Hallum Capital Group, and Lake Street Capital Markets, LLC are acting as lead managers for the offering and Laidlaw & Company (UK) Ltd. and Colliers Securities LLC are acting as co-managers for the offering.

The Company intends to use the net proceeds of the offering for working capital and general corporate purposes.

The securities described above are being offered by the Company pursuant to an effective shelf registration statement on Form S-3 (File No. 333-235887) previously filed with the Securities and Exchange Commission (“SEC”) on January 10, 2020, which registration statement was declared effective on January 31, 2020, and an additional registration statement on Form S-3MEF (File No. 333-253808) filed pursuant to Rule 462(b) under the Securities Act of 1933, as amended, on March 2, 2021, which registration statement became automatically effective upon filing. A preliminary prospectus supplement relating to the offering was filed with the SEC on March 2, 2021 and is available on the SEC’s website at http://www.sec.gov. The final prospectus supplement relating to and describing the terms of the offering will be filed with the SEC and also will be available on the SEC’s website. Before investing in the offering, you should read each of the prospectus supplement and the accompanying prospectus relating to the offering in their entirety as well as the other documents that the Company has filed with the SEC that are incorporated by reference in the prospectus supplement and the accompanying prospectus relating to the offering, which provide more information about the Company and the offering. Copies of the final prospectus supplement and accompanying prospectus relating to the offering may be obtained, when available, from Guggenheim Securities, LLC, Attention: Equity Syndicate Department, 330 Madison Avenue, New York, NY 10017, by telephone at (212) 518-9544, or by email at GSEquityProspectusDelivery@guggenheimpartners.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, 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 iCAD, Inc.
Headquartered in Nashua, NH, iCAD is a global medical technology leader providing innovative cancer detection and therapy solutions.

Forward-Looking Statements
Certain statements contained herein constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. For example, when the Company discusses satisfaction of customary closing conditions to the offering, the expected gross proceeds from the offering and the anticipated use of proceeds from the offering, it is using forward-looking statements. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited, to the Company’s ability to achieve business and strategic objectives, increase sales and acceptance of products, adoption by CMS of a new payment model, and that such model will prove beneficial to the Company, which is not assured, implement expansion plans, the risks of uncertainty of patent protection, the impact of supply and manufacturing constraints or difficulties, uncertainty of future sales levels, protection of patents and other proprietary rights, the impact of supply and manufacturing constraints or difficulties, product market acceptance, possible technological obsolescence of products, increased competition, to successfully defend itself in litigation matters, government regulation, changes in Medicare or other reimbursement policies, risks relating to the Company’s existing and future debt obligations, competitive factors, the effects of a decline in the economy or markets served by the Company, the effects of a global pandemic, and other risks detailed in the Company’s filings with the SEC. The words “believe,” “demonstrate,” “intend,” “expect,” “estimate,” “will,” “continue,” “anticipate,” “likely,” “seek,” and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date the statement was made. The Company is under no obligation to provide any updates to any information contained in this release. For additional disclosure regarding these and other risks faced by the Company, please see the disclosure contained in the Company’s public filings with the SEC, available on the Investors section of the Company’s website at http://www.icadmed.com and on the SEC’s website at http://www.sec.gov.

Contact:
Media Inquiries:
Jessica Burns, iCAD
+1-201-423-4492
jburns@icadmed.com

Investor Relations:
Jeremy Feffer, LifeSci Advisors
+ 1-212-915-2568
jeremy@lifesciadvisors.com

FAQ

What is the purpose of the recent stock offering by iCAD?

iCAD intends to use the proceeds from the stock offering for working capital and general corporate purposes.

What are the details of the stock offering for ICAD?

iCAD is offering 1,222,222 shares at $18.00 each, aiming for gross proceeds of approximately $22 million.

When is the expected closing date for iCAD's stock offering?

The closing of the offering is expected to occur on or about March 5, 2021.

Who is managing iCAD's stock offering?

Guggenheim Securities is the sole book-running manager, with JMP Securities and others as lead managers.

How many additional shares can underwriters purchase in iCAD's offering?

Underwriters have a 30-day option to purchase up to an additional 171,516 shares.