iRhythm Technologies Announces Pricing of Upsized Public Offering of Common Stock

Rhea-AI Summary

iRhythm Technologies (NASDAQ: IRTC) has announced the pricing of an underwritten public offering of 1,093,167 shares at $175.00 per share, aiming to raise approximately $191.3 million. The offering includes a 30-day option for underwriters to purchase an additional 163,975 shares. The funds will support growth initiatives, working capital, and potential expansions, such as enhancing their sales force and increasing R&D activities. The offering is set to close on August 21, 2020, pending customary conditions.

Positive

• Gross proceeds expected to be $191.3 million, providing significant funding for growth initiatives.
• Intended use of funds includes expanding sales force, R&D activities, and international growth.

Negative

• Potential dilution of existing shares due to the public offering.

SAN FRANCISCO, Aug. 18, 2020 (GLOBE NEWSWIRE) -- iRhythm Technologies, Inc. (NASDAQ: IRTC), a leading digital health care solutions company focused on the advancement of cardiac care, announced today the pricing of its underwritten public offering of 1,093,167 shares of its common stock at a public offering price of $175.00 per share, before deducting underwriting discounts and commissions. All of the shares are being offered for sale by iRhythm Technologies. In addition, iRhythm Technologies has granted the underwriters a 30-day option to purchase up to an additional 163,975 shares of its common stock at the public offering price, less underwriting discounts and commissions. The gross proceeds from the offering, before deducting underwriting discounts and commissions and other offering expenses payable by iRhythm Technologies, are expected to be $191.3 million, excluding any exercise of the underwriters’ option to purchase additional shares. The offering is expected to close on August 21, 2020, subject to customary closing conditions.

iRhythm Technologies intends to use the net proceeds from the offering, after deducting underwriting discounts and commissions and estimated offering expenses payable by iRhythm Technologies, to fund growth initiatives and for working capital and other general corporate purposes. iRhythm Technologies may also use a portion of the net proceeds to expand its sales force and operations, increase research and development activities, conduct or sponsor clinical studies and trials, expand internationally, and to provide for working capital and other general corporate purposes. iRhythm Technologies may use a portion of the net proceeds to acquire complementary products, technologies, intellectual property or businesses; however, iRhythm Technologies currently does not have any agreements or commitments to complete any such transactions and is not involved in negotiations regarding such transactions.

J.P. Morgan and Morgan Stanley are serving as joint lead book-running managers for the proposed offering. Citigroup, Truist Securities and William Blair are acting as co-managers. 

A registration statement on Form S-1 has been filed with the U.S. Securities and Exchange Commission (the SEC) for the offering to which this press release relates. The registration statement became effective on August 18, 2020. Before you invest, you should read the preliminary prospectus in the registration statement and the other documents iRhythm Technologies has filed with the SEC for more complete information about iRhythm Technologies and this offering. You may get these documents, including the final prospectus (when available), for free by visiting EDGAR on the SEC web site at www.sec.gov. Alternatively, copies may be obtained, when available, from: J.P. Morgan Securities LLC, Attention: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, via telephone: (866) 803-9204, or via email: prospectus-eq_fi@jpmorgan.com; or Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York 10014.

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 iRhythm Technologies, Inc.
iRhythm is a leading digital health care company redefining the way cardiac arrhythmias are clinically diagnosed. The company combines wearable biosensor devices worn for up to 14 days and cloud-based data analytics with powerful proprietary algorithms that distill data from millions of heartbeats into clinically actionable information. The company believes improvements in arrhythmia detection and characterization have the potential to change clinical management of patients.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These statements include statements regarding an offering of iRhythm Technologies’ common stock and the anticipated use of the net proceeds from the offering. Such statements are based on current assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties, many of which are beyond our control, include risks described in the section entitled “Risk Factors” and elsewhere in the preliminary prospectus related to this offering filed with the SEC and the other documents iRhythm files from time to time with the SEC, including iRhythm’s most recent Quarterly Report on Form 10-Q filed with the SEC on August 7, 2020. These forward-looking statements speak only as of the date hereof and should not be unduly relied upon. iRhythm disclaims any obligation to update these forward-looking statements.

Investor Relations Contact
Lynn Pieper Lewis or Leigh Salvo
(415) 937-5404
investors@irhythmtech.com

FAQ

What is the pricing of iRhythm Technologies' public offering?

The public offering price is $175.00 per share.

How many shares is iRhythm Technologies offering?

iRhythm Technologies is offering 1,093,167 shares.

What are the expected gross proceeds from the offering by iRhythm Technologies?

The expected gross proceeds are approximately $191.3 million.

What is the purpose of the funds raised from iRhythm Technologies' offering?

The funds will be used for growth initiatives, working capital, and potential expansion of operations.

When is the expected closing date for iRhythm Technologies' public offering?

The offering is expected to close on August 21, 2020.