NeuroPace Completes Repurchase of 5.3 Million Shares of Its Common Stock from KCK Ltd.
NeuroPace (NPCE) has completed its previously announced repurchase of 5,270,845 shares of common stock from KCK , representing KCK's entire remaining stake in the company. The repurchase was funded using proceeds from NeuroPace's recent underwritten public offering.
The company has also terminated its current at-the-market (ATM) offering program. Following the public offering, NeuroPace reports a strengthened balance sheet that it expects will support planned operations until reaching cash flow breakeven.
CEO Joel Becker expressed satisfaction with the recent financing interest and welcomed new investors, while acknowledging KCK 's historical support. The company maintains that the remaining proceeds from the financing will enable execution of its long-range plan presented at last month's investor day in New York City.
NeuroPace (NPCE) ha completato il riacquisto di 5.270.845 azioni ordinarie da KCK, che rappresenta l'intera partecipazione rimanente di KCK nella società. Il riacquisto è stato finanziato utilizzando i proventi dell'offerta pubblica recentemente sottoscritta da NeuroPace.
La società ha anche terminato il suo attuale programma di offerta at-the-market (ATM). Dopo l'offerta pubblica, NeuroPace riporta un bilancio rafforzato che si prevede supporterà le operazioni pianificate fino a raggiungere il pareggio di cassa.
Il CEO Joel Becker ha espresso soddisfazione per l'interesse recente nel finanziamento e ha accolto con favore i nuovi investitori, riconoscendo il supporto storico di KCK. La società sostiene che i proventi rimanenti dal finanziamento consentiranno l'esecuzione del suo piano a lungo termine presentato il mese scorso durante il giorno degli investitori a New York City.
NeuroPace (NPCE) ha completado la recompra de 5.270.845 acciones ordinarias de KCK, lo que representa toda la participación restante de KCK en la compañía. La recompra fue financiada con los ingresos de la reciente oferta pública suscrita de NeuroPace.
La compañía también ha terminado su actual programa de oferta at-the-market (ATM). Tras la oferta pública, NeuroPace informa de un balance fortalecido que espera respaldará las operaciones planificadas hasta alcanzar el equilibrio en el flujo de caja.
El CEO Joel Becker expresó satisfacción con el interés reciente en el financiamiento y dio la bienvenida a nuevos inversionistas, al tiempo que reconoció el apoyo histórico de KCK. La compañía sostiene que los ingresos restantes del financiamiento permitirán la ejecución de su plan a largo plazo presentado el mes pasado durante el día del inversionista en la ciudad de Nueva York.
NeuroPace (NPCE)는 KCK로부터 5,270,845주의 보통주를 재매입했다고 발표했습니다. 이는 KCK의 회사에 대한 전체 잔여 지분을 나타냅니다. 재매입은 NeuroPace의 최근 공모를 통해 조달된 자금으로 이루어졌습니다.
회사는 현재의 시장가치(ATM) 제공 프로그램을 종료했습니다. 공모 이후, NeuroPace는 현금 흐름 손익 분기점에 도달할 때까지 계획된 운영을 지원할 것으로 예상되는 강화된 재무 상태를 보고하고 있습니다.
CEO Joel Becker는 최근 자금 조달 관심에 대해 만족감을 표명하고 새로운 투자자들을 환영하며 KCK의 역사적인 지원을 인정했습니다. 회사는 자금 조달의 나머지 수익이 지난달 뉴욕에서 열린 투자자 데이에서 발표된 장기 계획의 실행을 가능하게 할 것이라고 주장하고 있습니다.
NeuroPace (NPCE) a achevé son rachat précédemment annoncé de 5.270.845 actions ordinaires de KCK, représentant l'intégralité de la participation restante de KCK dans l'entreprise. Le rachat a été financé par les produits de l'offre publique récemment souscrite par NeuroPace.
L'entreprise a également mis fin à son programme d'offre à la marché (ATM) actuel. Suite à l'offre publique, NeuroPace fait état d'un bilan renforcé qui devrait soutenir les opérations prévues jusqu'à atteindre le seuil de rentabilité en termes de flux de trésorerie.
Le PDG Joel Becker a exprimé sa satisfaction quant à l'intérêt récent pour le financement et a souhaité la bienvenue à de nouveaux investisseurs, tout en reconnaissant le soutien historique de KCK. L'entreprise soutient que les produits restants du financement permettront l'exécution de son plan à long terme présenté le mois dernier lors de la journée des investisseurs à New York.
NeuroPace (NPCE) hat den zuvor angekündigten Rückkauf von 5.270.845 Stammaktien von KCK abgeschlossen, was KCKs gesamten verbleibenden Anteil am Unternehmen darstellt. Der Rückkauf wurde mit den Erlösen aus der kürzlich durchgeführten öffentlichen Angebot von NeuroPace finanziert.
Das Unternehmen hat auch sein aktuelles At-the-Market (ATM) Angebot beendet. Nach dem öffentlichen Angebot berichtet NeuroPace von einer gestärkten Bilanz, die voraussichtlich die geplanten Operationen bis zur Erreichung des Cash-Flow-Break-Even unterstützen wird.
CEO Joel Becker äußerte Zufriedenheit über das jüngste Finanzierungsinteresse und begrüßte neue Investoren, während er KCKs historische Unterstützung anerkannte. Das Unternehmen ist überzeugt, dass die verbleibenden Erlöse aus der Finanzierung die Umsetzung seines langfristigen Plans ermöglichen werden, der letzten Monat beim Investorentag in New York City vorgestellt wurde.
- Strengthened balance sheet through public offering
- Expected cash runway until cash flow breakeven
- Termination of ATM offering program, reducing potential future dilution
- Organized exit of major shareholder through share repurchase
- Significant cash expenditure for share repurchase
- Dilution from recent public offering
Insights
This strategic financial restructuring marks a pivotal moment for NeuroPace, with several key implications for investors:
The repurchase of 5.27 million shares from KCK represents approximately 17.6% of NeuroPace's outstanding shares, signifying a major shift in the company's ownership structure. This transaction, funded through the recent public offering, effectively allows for an organized transition of a significant ownership stake while maintaining balance sheet strength.
The termination of the ATM offering program is particularly noteworthy as it signals strong confidence in the company's current capital position. This decision, combined with management's assertion of sufficient runway to reach cash flow breakeven, suggests a well-executed capital strategy that balances growth funding with shareholder interests.
The financing structure demonstrates sophisticated capital management: First raising funds through a public offering, then using a portion for the share repurchase, while retaining sufficient capital for operational needs. This approach helps maintain market stability by managing the transition of a large ownership stake without flooding the market with shares.
From a governance perspective, the exit of KCK marks the end of an era and potentially simplifies the ownership structure, which could lead to more streamlined decision-making processes. The strong investor interest in the recent public offering suggests market confidence in NeuroPace's business model and growth trajectory in the epilepsy treatment market.
The company's projection of reaching cash flow breakeven with current funding is crucial, as it indicates a clear path to financial sustainability without the need for additional capital raises in the near term. This could significantly reduce future dilution risk for current shareholders and demonstrates management's commitment to achieving operational efficiency.
MOUNTAIN VIEW, Calif., Feb. 20, 2025 (GLOBE NEWSWIRE) -- NeuroPace, Inc. (Nasdaq: NPCE), a medical device company focused on transforming the lives of people living with epilepsy, today announced it has completed the previously announced plan to repurchase 5,270,845 shares of the Company’s common stock from KCK Ltd. The repurchase of these shares allowed for the organized sale by KCK Ltd. of all remaining shares it held in the Company. NeuroPace funded the repurchase of these shares using a portion of the proceeds from its recent underwritten public offering. NeuroPace also strengthened its balance sheet following the closing of the public offering, which the Company now anticipates will be sufficient to support its planned operations until achieving cash flow breakeven. Additionally, the Company terminated its current at-the-market (ATM) offering program.
“We are pleased by the interest in our recent financing and the confidence it shows in our mission to transform the lives of people suffering from drug-resistant epilepsy through RNS® therapy. We are also excited to have a strong group of investors join NeuroPace as part of our recent financing,” said Joel Becker, Chief Executive Officer of NeuroPace. “We would also like to thank KCK Ltd. for their support of NeuroPace over the years.”
“The remaining proceeds from our recent financing further strengthened our balance sheet and our ability to execute the long-range plan we presented at our investor day held last month in New York City. Based on this plan, we believe that we have sufficient cash runway to achieve cash flow breakeven,” added Mr. Becker.
About NeuroPace, Inc.
Based in Mountain View, Calif., NeuroPace is a medical device company focused on transforming the lives of people living with epilepsy by reducing or eliminating the occurrence of debilitating seizures. Its novel and differentiated RNS System is the first and only commercially available, brain-responsive platform that delivers personalized, real-time treatment at the seizure source. This platform can drive a better standard of care for patients living with drug-resistant epilepsy and has the potential to offer a more personalized solution and improved outcomes to the large population of patients suffering from other brain disorders.
Forward-Looking Statements
This press release may contain forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as “aims,” “anticipates,” “believes,” “could,” “estimates,” “expects,” “forecasts,” “goal,” “intends,” “may,” “plans,” “possible,” “potential,” “seeks,” “will” and variations of these words or similar expressions that are intended to identify forward-looking statements, although not all forward-looking statements contain these words. Forward-looking statements in this press release include, but are not limited to, statements regarding: NeuroPace’s cash runway, use of its capital resources and its ability to execute its long-range plan or achieve cashflow break even. Actual results or events could differ materially from the plans, intentions and expectations disclosed in these forward-looking statements as a result of various factors, including: actual operating results may differ significantly from any guidance provided; risks related to NeuroPace’s use of its capital resources; uncertainties related to market acceptance and adoption of NeuroPace’s RNS System and impacts to NeuroPace’s revenue for 2025 and in the future; risks that NeuroPace’s operating expenses could be higher than anticipated and that the Company’s gross margin may be lower than forecast; risks related to the pricing of the RNS System and availability of adequate reimbursement for the procedures to implant the RNS System and for clinicians to provide ongoing care for patients treated with the RNS System; risks related to regulatory compliance and expectations for regulatory approvals to expand the market for NeuroPace’s RNS System; risks related to product development; and other important factors. These and other risks and uncertainties include those described more fully in the section titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in NeuroPace’s public filings with the U.S. Securities and Exchange Commission (SEC), including its Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, filed with the SEC on November 12, 2024, as well as any other reports that it may file with the SEC in the future. Forward-looking statements contained in this announcement are based on information available to NeuroPace as of the date hereof. NeuroPace undertakes no obligation to update such information except as required under applicable law. These forward-looking statements should not be relied upon as representing NeuroPace’s views as of any date subsequent to the date of this press release and should not be relied upon as a prediction of future events. In light of the foregoing, investors are urged not to rely on any forward-looking statement in reaching any conclusion or making any investment decision about any securities of NeuroPace.
Investor Contact:
Jeremy Feffer
Managing Director
LifeSci Advisors
jfeffer@lifesciadvisors.com
FAQ
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