OrthoPediatrics Corp. Announces Proposed Public Offering of Common Stock

Rhea-AI Summary

OrthoPediatrics Corp. (Nasdaq: KIDS) announced a public offering of its common stock on June 17, 2020. The offering aims to finance implant and instrument sets for customers, fund research and development, and expand marketing efforts. The underwriters have a 30-day option to purchase additional shares. The offering is contingent on market conditions and is conducted under a registered shelf statement effective since March 27, 2020. Piper Sandler and Stifel are the joint book-running managers. No assurances are provided regarding the offering's completion or terms.

Positive

• Intended use of funds includes investment in implant and instrument sets to enhance product offerings.
• Funding allocated for research and development, potentially driving innovation and market growth.
• Expansion of sales and marketing programs may increase market reach and revenue.

Negative

• Offering may lead to shareholder dilution if additional shares are sold.

WARSAW, Ind., June 17, 2020 (GLOBE NEWSWIRE) -- OrthoPediatrics Corp. (“OrthoPediatrics”) (Nasdaq: KIDS), a company exclusively focused on advancing the field of pediatric orthopedics, announced today that it is commencing an underwritten public offering of its common stock. OrthoPediatrics intends to grant the underwriters a 30-day option to purchase additional shares of its common stock at the public offering price, less the underwriting discounts and commissions. 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 the actual size or terms of the offering.

OrthoPediatrics intends to use the net proceeds from the proposed offering to invest in implant and instrument sets for consignment to its customers, fund research and development activities, and expand its sales and marketing programs, and for working capital and general corporate purposes.

Piper Sandler and Stifel are acting as joint book-running managers of the proposed offering.

The proposed offering will be made pursuant to a shelf registration statement on Form S-3 that became effective on March 27, 2020. The proposed offering will be made only by means of a written prospectus and prospectus supplement that form part of the registration statement. A preliminary prospectus supplement and accompanying prospectus relating to and describing the terms of the offering will be filed with the SEC and will be available on the SEC’s website at www.sec.gov.  When available, copies of the preliminary prospectus supplement and accompanying prospectus may also be obtained for free from the offices of Piper Sandler & Co., Attention: Prospectus Department, 800 Nicollet Mall, J12S03, Minneapolis, MN 55402, via telephone at (800) 747-3924 or via email at prospectus@psc.com; or from Stifel, Nicolaus & Company, Incorporated, Attention: Syndicate, One Montgomery Street, Suite 3700, San Francisco, CA 94104, via telephone at (415) 364-2720 or via 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 under the securities laws of any such state or jurisdiction.

Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of U.S. federal securities laws. You can identify forward-looking statements by the use of words such as "may," "might," "will," "should," "expect," "plan," "anticipate," "could," "believe," "estimate," "project," "target," "predict," "intend," "future," "goals," "potential,” "objective," "would" and other similar expressions. Forward-looking statements involve risks and uncertainties, many of which are beyond OrthoPediatrics’ control. Important factors could cause actual results to differ materially from those in the forward-looking statements, including, among others: the risks related to COVID-19, the impact such pandemic may have on the demand for our products, and our ability to respond to the related challenges; and the risks, uncertainties and factors set forth under "Risk Factors" in OrthoPediatrics’ Annual Report on Form 10-K filed with the SEC on March 5, 2020, as updated and supplemented by our other SEC reports filed time to time. Forward-looking statements speak only as of the date they are made. OrthoPediatrics assumes no obligation to update forward-looking statements to reflect actual results, subsequent events, or circumstances or other changes affecting such statements except to the extent required by applicable securities laws.

Investor Contacts
The Ruth Group
Tram Bui / Emma Poalillo
(646) 536-7035 / 7024
tbui@theruthgroup.com / epoalillo@theruthgroup.com

FAQ

What is the purpose of OrthoPediatrics' stock offering?

OrthoPediatrics intends to use the proceeds from the stock offering for investments in implant sets, R&D activities, and marketing expansion.

When did OrthoPediatrics announce its public offering?

OrthoPediatrics announced its public offering on June 17, 2020.

Who are the underwriters for OrthoPediatrics' stock offering?

Piper Sandler and Stifel are acting as joint book-running managers for the proposed offering.

What is the potential risk of OrthoPediatrics' stock offering?

The stock offering may result in shareholder dilution if additional shares are issued.

What factors could affect the completion of OrthoPediatrics' offering?

The completion of the offering is subject to market conditions and other uncertainties.