Pulse Biosciences, Inc. Announces Election to Exercise Company Warrants

Rhea-AI Summary

Pulse Biosciences (Nasdaq: PLSE), a bioelectric medicine company, announced on December 18, 2024, that its Co-Chairman and majority shareholder, Robert W. Duggan, exercised all of the warrants acquired in the company's 2024 rights offering. This transaction, valued at $58.4 million, resulted in the acquisition of 5,306,156 shares of common stock. Additionally, Mr. Duggan purchased another 156,714 shares of Pulse Biosciences between December 11 and December 13, 2024. These actions have increased Mr. Duggan's ownership in the company to approximately 70%.

Positive

• Robert W. Duggan exercised $58.4 million in warrants, acquiring 5,306,156 shares.
• Duggan's ownership in Pulse Biosciences increased to approximately 70%.

Negative

• None.

Insights

Financial Analyst

The exercise of $58.4 million worth of warrants by Co-Chairman Robert Duggan represents a substantial capital injection for Pulse Biosciences. This transaction, combined with his additional purchase of 156,714 shares, increases his ownership to 70% of the company, demonstrating significant insider confidence. The warrant exercise provides immediate working capital without incurring debt, strengthening the company's balance sheet for CellFX System commercialization. This move consolidates Duggan's control over the company's direction and suggests a strong belief in the long-term potential of their bioelectric medicine platform. For minority shareholders, while this indicates strong insider commitment, it also means reduced float and potentially lower trading liquidity. The timing of this exercise, ahead of the warrants' expiration, signals strategic planning and commitment to the company's growth trajectory.

Market Research Analyst

This strategic move by Duggan has multiple market implications. The increased ownership concentration could impact stock trading dynamics - with reduced public float, the stock may experience higher volatility. The substantial capital injection strengthens the company's commercialization capabilities for their CellFX System, potentially accelerating market penetration. The 70% ownership level gives Duggan significant control over corporate decisions, which could streamline strategic initiatives but also raises corporate governance considerations for minority shareholders. The market typically views substantial insider buying positively, especially when executed through warrant exercise, as it represents a significant cash commitment rather than just paper gains. This transaction could serve as a catalyst for institutional investors' interest, particularly given the company's focus on the growing bioelectric medicine market.

HAYWARD, Calif.--(BUSINESS WIRE)-- Pulse Biosciences, Inc. (Nasdaq: PLSE) (the “Company” or “Pulse Biosciences”), a novel bioelectric medicine company commercializing the CellFX® System powered by Nano-Pulse Stimulation™ (NPS™) technology, today announced that, on December 18, 2024, the Company’s Co-Chairman and majority shareholder, Robert W. Duggan, exercised all of the warrants he acquired in the Company’s 2024 rights offering, corresponding to $58.4 million totaling to 5,306,156 shares of Company common stock. Mr. Duggan also confirmed that, from December 11, 2024 through this past Friday, December 13, 2024, he has purchased an additional 156,714 shares of Pulse Biosciences. These transactions bring Mr. Duggan’s current ownership in the Company to approximately 70%.

About Pulse Biosciences®

Pulse Biosciences is a novel bioelectric medicine company committed to health innovation that has the potential to improve the quality of life for patients. The Company’s proprietary CellFX® nsPFA™ technology delivers nanosecond pulses of electrical energy to non-thermally clear cells while sparing adjacent noncellular tissue. The Company is actively pursuing the development of its CellFX nsPFA technology for use in the treatment of atrial fibrillation and in a select few other markets where it could have a profound positive impact on healthcare for both patients and providers. Pulse Biosciences is now headquartered in Miami, Florida and maintains its office in Hayward, California.

Pulse Biosciences, CellFX, Nano-Pulse Stimulation, NPS, nsPFA, CellFX nsPFA and the stylized logos are among the trademarks and/or registered trademarks of Pulse Biosciences, Inc. in the United States and other countries.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241219059064/en/

Investors:

Pulse Biosciences, Inc.

Darrin Uecker, CTO or Kevin Danahy, CCO

IR@pulsebiosciences.com

or

Gilmartin Group

Philip Trip Taylor

415.937.5406

philip@gilmartinir.com

Rights Offering Information, Subscription and Warrant Agent:

Broadridge Corporate Issuer Solutions, LLC

Attn: BCIS Re-Organization Dept.

P.O. Box 1317

Brentwood, NY 11717-0718

888.789.8409

shareholder@broadridge.com

Source: Pulse Biosciences, Inc.

FAQ

What was the value of the warrants exercised by Robert W. Duggan in PLSE?

Robert W. Duggan exercised warrants valued at $58.4 million.

How many shares did Robert W. Duggan acquire from the 2024 rights offering?

Robert W. Duggan acquired 5,306,156 shares from the 2024 rights offering.

What is Robert W. Duggan's current ownership percentage in Pulse Biosciences (PLSE)?

Robert W. Duggan's current ownership in Pulse Biosciences is approximately 70%.

How many additional shares did Robert W. Duggan purchase between December 11 and December 13, 2024?

Robert W. Duggan purchased an additional 156,714 shares between December 11 and December 13, 2024.

When did Robert W. Duggan exercise his warrants in Pulse Biosciences (PLSE)?

Robert W. Duggan exercised his warrants on December 18, 2024.