RadNet Announces Closing of Public Offering of Common Stock

Rhea-AI Summary

RadNet, Inc. (NASDAQ: RDNT) successfully closed an underwritten public offering of 5,232,500 shares of common stock, raising approximately $230.2 million. The offering price per share was $44.00, with an option for underwriters to purchase an additional 682,500 shares. The net proceeds will be used for general corporate purposes and future acquisitions.

Insights

Financial Analyst

The closing of RadNet's public offering, resulting in gross proceeds of approximately $230.2 million, is a significant financial event for the company. The choice to exercise the option for additional shares indicates a strong demand from investors, which could be seen as a positive signal regarding market confidence in RadNet's business model and growth prospects. The capital raised is earmarked for general corporate purposes and future acquisitions, which suggests strategic moves aimed at expansion or improving competitive positioning. However, investors should be aware of the potential for dilution of existing shares, which can affect share value.

Moreover, the involvement of reputable financial institutions such as Jefferies and Raymond James as joint active book-running managers, alongside other notable firms, adds a layer of credibility to the offering. It is important to monitor how the net proceeds are allocated, as effective use can lead to enhanced operational capabilities and market share growth, while poor investment decisions may not yield the expected returns.

Market Research Analyst

RadNet operates in the outpatient diagnostic imaging services market, which is characterized by high demand due to an aging population and the increasing prevalence of chronic diseases. The influx of $230.2 million in capital provides RadNet with the opportunity to potentially acquire smaller competitors or invest in new imaging technologies, which could improve service offerings and patient outcomes. The impact on the market could be twofold: RadNet may strengthen its market position and the industry might see increased consolidation.

It's crucial to consider the competitive landscape and reimbursement rates for imaging services when evaluating the potential success of RadNet's strategic investments. The company's ability to integrate acquisitions and realize cost synergies will be a critical factor in determining the long-term return on this capital infusion.

Legal Expert

The offering was conducted under a shelf registration statement, a regulatory filing that allows for the quick capitalization on favorable market conditions. This method provides RadNet with flexibility but also requires strict adherence to SEC regulations. Investors should note that the effectiveness of the shelf registration and the role of the SEC in declaring it effective are safeguards to ensure transparency and compliance in the process.

Furthermore, the availability of the final prospectus supplement and accompanying prospectus allows stakeholders to scrutinize the details of the offering. This transparency is crucial for informed decision-making and any deviations from disclosed intentions regarding the use of proceeds can have legal implications and affect investor trust.

LOS ANGELES, March 12, 2024 (GLOBE NEWSWIRE) -- RadNet, Inc. (NASDAQ: RDNT), a national leader in providing high-quality, cost-effective, fixed-site outpatient diagnostic imaging services, announced today the closing of its underwritten public offering of 5,232,500 shares of its common stock at a price to the public of $44.00 per share, which includes the exercise in full by the underwriters of their option to purchase up to 682,500 additional shares of its common stock. The gross proceeds to RadNet from the offering, before deducting the underwriting discounts and commissions and other offering expenses, are approximately $230.2 million.

RadNet intends to use the net proceeds from the proposed offering for general corporate purposes and future acquisitions.

Jefferies and Raymond James are acting as joint active book-running managers for the offering. Truist Securities and Barclays are also acting as joint book-running managers for the offering. RBC Capital Markets, Sidoti & Company, LLC and CJS Securities are acting as co-managers for the offering.

The securities described above were offered by RadNet pursuant to a shelf registration statement previously filed and declared effective by the Securities and Exchange Commission (“SEC”). Copies of the final prospectus supplement and the accompanying prospectus relating to the offering may be obtained from: Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, NY 10022, by telephone at (877) 821-7388 or by email at prospectus_department@jefferies.com; or from Raymond James & Associates, Inc., Attention: Equity Syndicate, 880 Carillon Parkway, St. Petersburg, Florida 33716, by telephone at (800) 248-8863, or by email at prospectus@raymondjames.com. Electronic copies of the final prospectus supplement and accompanying prospectus were filed with the SEC and are available on the website of the SEC at http://www.sec.gov.

About RadNet, Inc.

RadNet, Inc., is the leading national provider of freestanding, fixed-site diagnostic imaging services and related information technology solutions (including artificial intelligence) in the United States based on the number of locations and annual imaging revenue. RadNet has a network of 366 owned and/or operated outpatient imaging centers. RadNet’s markets include Arizona, California, Delaware, Florida, Maryland, New Jersey and New York. Together with affiliated radiologists, inclusive of full-time and per diem employees and technologists, RadNet has a total of over 9,700 employees.

Forward-Looking Statements

RadNet cautions you that statements contained in this press release regarding matters that are not historical facts are forward-looking statements. These statements are based on the company’s current beliefs and expectations. Such forward-looking statements include, but are not limited to, statements relating to the anticipated use of proceeds from the offering. The inclusion of forward-looking statements should not be regarded as a representation by RadNet that any of its plans will be achieved. Actual results may differ from those set forth in this press release due to the risks and uncertainties inherent in RadNet’s business described in the Company’s filings with the SEC, included under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K and any subsequent filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and RadNet undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

CONTACTS:

RadNet, Inc.
Mark Stolper, 310-445-2800
Executive Vice President and Chief Financial Officer

FAQ

How many shares of common stock were offered in RadNet's public offering?

RadNet offered 5,232,500 shares of common stock in its public offering.

What was the price per share in RadNet's public offering?

The price per share in RadNet's public offering was $44.00.

How much did RadNet raise in gross proceeds from the public offering?

RadNet raised approximately $230.2 million in gross proceeds from the public offering.

What will RadNet use the net proceeds from the offering for?

RadNet intends to use the net proceeds from the offering for general corporate purposes and future acquisitions.

Who were the active book-running managers for RadNet's offering?

Jefferies and Raymond James acted as joint active book-running managers for RadNet's offering.