PROCEPT BioRobotics Corporation Announces Proposed Offering of Common Stock

Rhea-AI Summary

PROCEPT BioRobotics (NASDAQ: PRCT), a surgical robotics company specializing in urology solutions, has announced a $175 million public offering of common stock. A selling stockholder will grant underwriters a 30-day option to purchase up to an additional $26.25 million of shares. The company will not receive proceeds from the selling stockholder's share sale. BofA Securities, Piper Sandler and Morgan Stanley are acting as joint book-running managers. The offering will be conducted through a prospectus supplement and accompanying prospectus filed with the SEC.

Positive

• None.

Negative

• Company will not receive proceeds from selling stockholder's portion of the offering
• Potential dilution of existing shareholders' equity through new share issuance

Insights

Financial Analyst

This $175M common stock offering, plus potential additional $26.25M from selling stockholders, represents a significant capital raise for PROCEPT BioRobotics. With a market cap of $3.62B, this offering would represent approximately 4.8% dilution for existing shareholders at current market prices (excluding the additional option).

The timing of this offering suggests the company is looking to strengthen its balance sheet and fund growth initiatives in the surgical robotics space. Having major investment banks like BofA, Piper Sandler and Morgan Stanley as joint book-runners adds credibility to the offering, though the final pricing will be important in determining the actual impact on shareholders.

The fact that the company won't receive proceeds from the selling stockholder portion could indicate some early investors are looking to reduce their positions, which warrants attention from current shareholders regarding potential insider sentiment.

SAN JOSE, Calif., Oct. 28, 2024 (GLOBE NEWSWIRE) -- PROCEPT BioRobotics^® Corporation (NASDAQ: PRCT) (“PROCEPT BioRobotics” or the “Company”), a surgical robotics company focused on advancing patient care by developing transformative solutions in urology, today announced the commencement of an underwritten public offering of $175,000,000 of shares of its common stock. A selling stockholder also expects to grant the underwriters a 30-day option to purchase up to an additional $26,250,000 of shares of the Company’s common stock. PROCEPT BioRobotics will not receive any proceeds from any sale of shares by the selling stockholder. The proposed 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.

BofA Securities, Piper Sandler and Morgan Stanley are acting as joint book-running managers for the proposed offering.

The securities are being offered pursuant to an effective shelf registration statement that was filed with the U.S. Securities and Exchange Commission (the “SEC”) on August 1, 2023. This offering will be made only by means of a prospectus supplement and the accompanying prospectus which forms a part of the effective shelf registration statement.

A preliminary prospectus supplement related to the offering (including the accompanying prospectus) will be filed with the SEC and will be available on the SEC’s website located at www.sec.gov. Copies of the preliminary prospectus supplement and the accompanying prospectus may also be obtained, when available, from BofA Securities, NC1-022-02-25, 201 North Tryon Street, Charlotte, NC 28255-0001, Attn: Prospectus Department, or via email: dg.prospectus_requests@bofa.com; from Piper Sandler, 800 Nicollet Mall, J12S03, Minneapolis, Minnesota 55402, Attention: Prospectus Department, by telephone at (800) 747-3924, or via e-mail at prospectus@psc.com; and from Morgan Stanley, Prospectus Department, 180 Varick Street, New York, New York 10014, or email: prospectus@morganstanley.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 other 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 PROCEPT BioRobotics Corporation

PROCEPT BioRobotics is a surgical robotics company focused on advancing patient care by developing transformative solutions in urology. PROCEPT BioRobotics manufactures the AQUABEAM^® and HYDROS™ Robotic Systems. The HYDROS Robotic System is the only AI-Powered, robotic technology that delivers Aquablation therapy. PROCEPT BioRobotics designed Aquablation therapy to deliver effective, safe, and durable outcomes for males suffering from lower urinary tract symptoms or LUTS, due to BPH that are independent of prostate size and shape or surgeon experience. BPH is the most common prostate disease and impacts approximately 40 million men in the United States. The Company has developed a significant and growing body of clinical evidence with over 150 peer-reviewed publications, supporting the benefits and clinical advantages of Aquablation therapy.

Forward Looking Statements

This press release contains forward-looking statements. All statements other than statements of historical facts contained herein, including without limitation statements regarding the completion, timing and size of the proposed public offering and the grant to the underwriters of an option to purchase additional shares are forward-looking statements reflecting the current beliefs and expectations of PROCEPT BioRobotics’s management made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent PROCEPT BioRobotics’s current expectations regarding future events and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those implied by the forward-looking statements. Among those risks and uncertainties are market conditions, including market interest rates, the trading price and volatility of PROCEPT BioRobotics’s common stock, and risks relating to PROCEPT BioRobotics’s business, including those risks described in periodic reports that PROCEPT BioRobotics files from time to time with the SEC, as well as the preliminary prospectus supplement and accompanying prospectus relating to the proposed offering. The forward-looking statements included in this press release speak only as of the date of this press release, and PROCEPT BioRobotics does not undertake to update the statements included in this press release for subsequent developments, except as may be required by law.

Investor Contact:
Matt Bacso
VP, Investor Relations and Business Operations
m.bacso@procept-biorobotics.com

FAQ

How much is PROCEPT BioRobotics (PRCT) planning to raise in its public offering?

PROCEPT BioRobotics is planning to raise $175 million through a public offering of common stock, with an additional option for underwriters to purchase up to $26.25 million in shares.

Who are the underwriters for PROCEPT BioRobotics (PRCT) public offering?

BofA Securities, Piper Sandler, and Morgan Stanley are acting as joint book-running managers for the proposed offering.

Will PROCEPT BioRobotics (PRCT) receive proceeds from the selling stockholder's shares?

No, PROCEPT BioRobotics will not receive any proceeds from the sale of shares by the selling stockholder.