enVVeno Medical Corporation Announces Proposed Public Offering

Rhea-AI Summary

enVVeno Medical (NASDAQ:NVNO) has announced a proposed public offering of common stock and pre-funded warrants. The company plans to grant the underwriter a 30-day option to purchase up to an additional 15% of the offered securities. Titan Partners Group, a division of American Capital Partners, is acting as the sole bookrunner for the offering.

The net proceeds will be used primarily for the continued development of enVVeno's two lead products, VenoValve and enVVe, as well as for general corporate purposes. The offering is subject to market conditions, and there is no assurance regarding its completion or terms.

The securities will be offered under a previously filed shelf registration statement. A preliminary prospectus supplement and accompanying base prospectus will be filed with the SEC.

Positive

• Potential to raise capital for product development
• Continued development of two lead products: VenoValve and enVVe
• Possibility of additional funding through underwriter's 30-day option

Negative

• Potential dilution of existing shareholders' ownership
• Uncertainty regarding the completion and terms of the offering
• Market conditions may affect the success of the offering

Insights

Financial Analyst

enVVeno Medical's proposed public offering signals a significant capital-raising effort, likely aimed at funding their product development pipeline. The offering of common stock and pre-funded warrants could substantially dilute existing shareholders, depending on the size and pricing of the offering. While this move may provide necessary capital for advancing their VenoValve and enVVe products, it also indicates potential cash flow concerns.

The company's focus on venous disease treatment represents a niche market with growth potential, but investors should consider the risks associated with medical device development and regulatory approvals. The use of a shelf registration suggests the company is opportunistically tapping into market conditions for funding.

With a current market cap of $60.25 million, this offering could significantly alter the company's capital structure. Investors should closely monitor the terms of the offering and assess how the additional capital aligns with enVVeno's development timelines and cash burn rate. The involvement of Titan Partners Group as sole bookrunner may impact the offering's success and pricing.

Medical Research Analyst

enVVeno's focus on developing new standards for venous disease treatment with their VenoValve and enVVe products shows promise in addressing an underserved medical need. Venous disease affects millions globally and innovative treatments could capture a significant market share if successful.

However, the need for additional funding through this public offering suggests that the company is still in the resource-intensive development and clinical trial phases. This is typical for medical device companies but underscores the long road ahead before potential commercialization. Investors should consider the timelines for clinical trials, regulatory approvals and potential market adoption.

The success of enVVeno's products will depend on clinical efficacy, safety profiles and their ability to demonstrate superiority over existing treatments. While the company's specialization could be a strength, it also concentrates risk. The outcome of this capital raise and subsequent product development will be important in determining enVVeno's future in the competitive medical device landscape.

IRVINE, CA / ACCESSWIRE / September 26, 2024 / enVVeno Medical Corporation (NASDAQ:NVNO) ("enVVeno" or the "Company"), a company setting new standards of care for the treatment of venous disease, today announced that it is proposing to offer and sell, subject to market conditions, shares of its common stock (or pre-funded warrants in lieu thereof) in an underwritten public offering. enVVeno expects to grant the underwriter a 30-day option to purchase up to an additional 15% of the number of shares of common stock and pre-funded warrants to be offered in this public offering on the same terms and conditions. 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.

enVVeno intends to use the net proceeds from the offering primarily for the continued development of its two lead products, VenoValve and enVVe, and for general corporate purposes, including working capital.

Titan Partners Group, a division of American Capital Partners, is acting as sole bookrunner for this offering.

The securities described above will be offered pursuant to a shelf registration statement on Form S-3 (File No. 333-273546), which was previously filed with the Securities and Exchange Commission ("SEC") and became effective on August 23, 2023. A preliminary prospectus supplement and accompanying base 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 located at http://www.sec.gov, copies of which may be obtained, when available, for free by contacting Titan Partners Group LLC, a division of American Capital Partners, LLC, 4 World Trade Center, 29th Floor, New York, New York 10007, by phone at (929) 833-1246 or by email at prospectus@titanpartnersgrp.com.

This offering will be made only by means of a prospectus. 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 other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About enVVeno Medical Corporation

enVVeno Medical Corporation (NASDAQ: NVNO) is an Irvine, California-based, late clinical-stage medical device company focused on the advancement of innovative bioprosthetic (tissue-based) solutions to improve the standard of care for the treatment of venous disease. The Company's lead product, the VenoValve®, is a first-in-class surgical replacement venous valve being developed for the treatment of deep venous Chronic Venous Insufficiency (CVI). The Company is also developing a non-surgical, transcatheter based replacement venous valve for the treatment of deep venous CVI called enVVe®. CVI occurs when valves inside of the veins of the leg become damaged, resulting in the backwards flow of blood (reflux), blood pooling in the lower leg, increased pressure in the veins of the leg (venous hypertension) and in severe cases, venous ulcers that are difficult to heal and become chronic. Both the VenoValve® and enVVe® are designed to act as one-way valves, to help assist in propelling blood up the leg, and back to the heart and lungs. The VenoValve® is currently being evaluated in the SAVVE U.S. pivotal trial and the Company is currently performing the final testing necessary to seek approval for the enVVe® pivotal trial.

Cautionary Note on Forward-Looking Statements

Except for historical information contained herein, this press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about the Company's expectations regarding the completion, terms, size, and timing of the public offering, and with respect to granting the underwriters a 30-day option to purchase additional shares. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. These statements are based on management's current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements, including risks and uncertainties related to completion of the public offering on the anticipated terms or at all, market conditions and the satisfaction of customary closing conditions related to the public offering, and those other factors described in our risk factors set forth in our filings with the Securities and Exchange Commission from time to time, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. We undertake no obligation to update the forward-looking statements contained herein or to reflect events or circumstances occurring after the date hereof, other than as may be required by applicable law

Investor Contact:

Jenene Thomas, JTC Team, LLC
NVNO@jtcir.com
(908) 824-0775

SOURCE: enVVeno Medical Corporation

View the original press release on accesswire.com

FAQ

What is the purpose of enVVeno Medical's (NVNO) proposed public offering?

enVVeno Medical (NVNO) intends to use the net proceeds from the offering primarily for the continued development of its two lead products, VenoValve and enVVe, and for general corporate purposes, including working capital.

Who is the underwriter for enVVeno Medical's (NVNO) proposed public offering?

Titan Partners Group, a division of American Capital Partners, is acting as the sole bookrunner for enVVeno Medical's (NVNO) proposed public offering.

What securities is enVVeno Medical (NVNO) offering in its proposed public offering?

enVVeno Medical (NVNO) is proposing to offer shares of its common stock and pre-funded warrants in lieu of common stock in its underwritten public offering.

When did enVVeno Medical's (NVNO) shelf registration statement become effective?

enVVeno Medical's (NVNO) shelf registration statement on Form S-3 (File No. 333-273546) became effective on August 23, 2023.