Semler Scientific® Announces Proposed Private Offering of $75.0 Million of Convertible Senior Notes
Semler Scientific (NASDAQ: SMLR) has announced plans to offer $75.0 million in convertible senior notes due 2030 through a private offering to qualified institutional buyers. The company will grant initial purchasers an option for an additional $15.0 million in notes within a 13-day period.
The notes will be senior unsecured obligations with semiannual interest payments. Upon conversion, Semler can choose to pay in cash, common stock shares, or a combination thereof. The company plans to use the proceeds to fund capped call transactions and for general corporate purposes, including bitcoin acquisition.
The capped call transactions are designed to offset potential dilution from note conversion. The offering's completion depends on market conditions, with specific terms including interest rate and conversion rate to be determined at pricing.
Semler Scientific (NASDAQ: SMLR) ha annunciato piani per offrire 75,0 milioni di dollari in note senior convertibili con scadenza nel 2030 attraverso un'offerta privata per acquirenti istituzionali qualificati. L'azienda concederà agli acquirenti iniziali un'opzione per ulteriori 15,0 milioni di dollari in note all'interno di un periodo di 13 giorni.
Le note saranno obbligazioni senior non garantite con pagamenti di interessi semestrali. Alla conversione, Semler potrà scegliere di pagare in contante, con azioni ordinarie, o una combinazione di entrambe. L'azienda prevede di utilizzare i proventi per finanziare transazioni di capped call e per scopi aziendali generali, incluso l'acquisto di bitcoin.
Le transazioni di capped call sono progettate per compensare la potenziale diluizione derivante dalla conversione delle note. Il completamento dell'offerta dipende dalle condizioni di mercato, con termini specifici come tasso d'interesse e tasso di conversione che saranno determinati al momento della determinazione del prezzo.
Semler Scientific (NASDAQ: SMLR) ha anunciado planes para ofrecer 75.0 millones de dólares en notas senior convertibles con vencimiento en 2030 a través de una oferta privada para compradores institucionales calificados. La empresa otorgará a los compradores iniciales una opción por un adicional de 15.0 millones de dólares en notas dentro de un período de 13 días.
Las notas serán obligaciones senior no aseguradas con pagos de intereses semestrales. Al momento de la conversión, Semler puede elegir pagar en efectivo, acciones ordinarias o una combinación de ambas. La empresa planea utilizar los ingresos para financiar transacciones de capped call y para fines corporativos generales, incluyendo la adquisición de bitcoin.
Las transacciones de capped call están diseñadas para compensar la posible dilución de la conversión de las notas. La finalización de la oferta depende de las condiciones del mercado, con términos específicos que incluyen la tasa de interés y la tasa de conversión que se determinarán al momento de la fijación del precio.
Semler Scientific (NASDAQ: SMLR)는 자격을 갖춘 기관 투자자를 대상으로 2030년 만기 전환 우선주 7,500만 달러를 사모로 제공할 계획을 발표했습니다. 회사는 초기 구매자에게 13일 이내에 1,500만 달러의 추가 노트를 선택할 수 있는 옵션을 제공합니다.
이 노트들은 반기 이자 지급이 있는 선순위 무담보 채무입니다. 전환 시, Semler는 현금, 보통주 또는 이 둘의 조합으로 지급할 수 있습니다. 회사는 수익금을 capped call 거래와 일반 회사 용도로 사용할 계획이며, 비트코인 매입도 포함됩니다.
capped call 거래는 노트 전환으로 인한 잠재적 희석을 상쇄하기 위해 설계되었습니다. 제안 완료는 시장 조건에 따라 다르며, 금리 및 전환 비율과 같은 특정 조건은 가격 책정 시 결정됩니다.
Semler Scientific (NASDAQ: SMLR) a annoncé des plans pour offrir 75,0 millions de dollars en obligations senior convertibles arrivant à échéance en 2030 par le biais d'une offre privée réservée aux acheteurs institutionnels qualifiés. La société accordera aux premiers acheteurs une option pour des obligations supplémentaires de 15,0 millions de dollars dans une période de 13 jours.
Les obligations seront des engagements seniors non garantis avec des paiements d'intérêts semestriels. Lors de la conversion, Semler pourra choisir de payer en espèces, en actions ordinaires ou une combinaison des deux. La société prévoit d'utiliser les recettes pour financer des transactions de capped call et pour des objectifs d'entreprise généraux, y compris l'acquisition de bitcoin.
Les transactions de capped call sont conçues pour compenser la dilution potentielle due à la conversion des obligations. L'achèvement de l'offre dépend des conditions du marché, avec des modalités spécifiques telles que le taux d'intérêt et le taux de conversion devant être déterminées au moment du prix.
Semler Scientific (NASDAQ: SMLR) hat Pläne angekündigt, 75,0 Millionen Dollar in wandelbaren vorrangigen Schuldverschreibungen mit Fälligkeit im Jahr 2030 über ein privates Angebot an qualifizierte institutionelle Käufer anzubieten. Das Unternehmen wird den Erstkäufern eine Option auf zusätzliche 15,0 Millionen Dollar an Schuldverschreibungen innerhalb eines Zeitraums von 13 Tagen gewähren.
Die Schuldverschreibungen werden unbesicherte vorrangige Verpflichtungen mit halbjährlichen Zinsen sein. Bei der Umwandlung kann Semler wählen, ob in bar, in Stammaktien oder in einer Kombination aus beidem bezahlt wird. Das Unternehmen plant, die Erlöse zur Finanzierung von Capped Call-Transaktionen und für allgemeine Unternehmenszwecke, einschließlich Bitcoin-Erwerb, zu verwenden.
Die Capped Call-Transaktionen sind so konzipiert, dass sie potenzielle Verwässerung durch die Umwandlung der Schuldverschreibungen ausgleichen. Der Abschluss des Angebots hängt von den Marktbedingungen ab, wobei spezifische Bedingungen wie Zinssatz und Umwandlungsrate zum Zeitpunkt der Preisfestsetzung bestimmt werden.
- Raising up to $90M in capital through convertible notes
- Implementation of capped call transactions to minimize shareholder dilution
- Flexible conversion terms allowing payment in cash, stock, or combination
- Potential dilution of existing shareholders upon note conversion
- Addition of debt to balance sheet with semiannual interest payments
- Risk exposure to bitcoin volatility through planned cryptocurrency investment
Insights
This $75 million convertible notes offering represents a significant strategic move for Semler Scientific, carrying multiple implications for investors. The structure includes sophisticated financial engineering with capped call transactions to minimize dilution risk - a important consideration given the company's relatively modest market cap of
Several aspects warrant careful attention:
- The company's intention to use proceeds for bitcoin acquisition is particularly noteworthy and potentially concerning. This represents a significant departure from Semler's core business model in medical devices and could introduce substantial volatility to the balance sheet.
- The capped call transactions, while protective against dilution, come at a cost that will consume part of the raised capital. However, this protection is valuable given the company's size and the offering's magnitude representing about
12.5% of market cap. - The notes' conversion feature and the complex hedging activities by option counterparties could create significant near-term pressure on the stock. Investors should expect increased volatility during the initial hedging period and around conversion dates.
The offering's size relative to market cap suggests a substantial transformation in Semler's capital structure. While the convertible format provides lower-cost financing compared to straight debt, the bitcoin investment strategy introduces a new risk factor that appears misaligned with the company's historical focus on cardiovascular testing equipment. This combination of financial engineering and crypto exposure represents a material shift in corporate strategy that merits careful investor scrutiny.
The notes will be senior unsecured obligations of Semler Scientific and will accrue interest payable semiannually in arrears. Upon conversion, Semler Scientific will pay or deliver, as the case may be, cash, shares of its common stock or a combination of cash and shares of its common stock, at its election. The interest rate, initial conversion rate, repurchase or redemption rights and other terms of the notes will be determined at the time of pricing of the offering. The offering is subject to market and other conditions, and there can be no assurance as to whether, when or on what terms the offering may be completed.
Semler Scientific intends to use a portion of the net proceeds from the offering to pay the cost of the capped call transactions described below and the remainder of the net proceeds for general corporate purposes, including the acquisition of bitcoin.
In connection with the pricing of the notes, Semler Scientific expects to enter into privately negotiated capped call transactions (the "capped call transactions") with one or more of the initial purchasers or their respective affiliates and/or other financial institutions (the "option counterparties"). The capped call transactions will cover, subject to customary adjustments, the number of shares of Semler Scientific's common stock that will initially underlie the notes. The capped call transactions are expected to offset the potential dilution to Semler Scientific's common stock as a result of any conversion of the notes, with such reduction subject to a cap. If the initial purchasers exercise their option to purchase additional notes, Semler Scientific expects to enter into additional capped call transactions with the option counterparties.
In connection with establishing their initial hedges of the capped call transactions, Semler Scientific expects that the option counterparties and/or their respective affiliates may enter into various derivative transactions with respect to its common stock and/or purchase its common stock in secondary market transactions concurrently with or shortly after the pricing of the notes, including with certain investors in the notes. This activity could increase (or reduce the size of any decrease in) the market price of Semler Scientific's common stock or the notes at that time.
In addition, Semler Scientific expects that the option counterparties and/or their respective affiliates may modify or unwind their hedge positions by entering into or unwinding various derivative transactions and/or purchasing or selling Semler Scientific's common stock or other securities of Semler Scientific in secondary market transactions following the pricing of the notes and prior to the maturity of the notes (and are likely to do so on each exercise date of the capped call transactions, which are scheduled to occur during the observation period relating to any conversion of the notes on or after May 1, 2030 that is not in connection with a redemption, or following Semler Scientific's election to terminate any portion of the capped call transactions in connection with any repurchase, redemption, exchange or early conversion of the notes). This activity could also cause or avoid an increase or a decrease in the market price of Semler Scientific's common stock or the notes, which could affect a noteholder's ability to convert its notes and, to the extent the activity occurs during any observation period related to a conversion of notes, it could affect the amount and value of the consideration that a noteholder will receive upon conversion of its notes.
Neither the notes, nor the shares of Semler Scientific's common stock issuable upon conversion of the notes, if any, have been registered under the Securities Act or any state securities laws, and unless so registered, may not be offered or sold in
This press release is neither an offer to sell nor a solicitation of an offer to buy any securities, nor shall it constitute an offer, solicitation or sale of any securities in any state or 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 jurisdiction.
About Semler Scientific
Semler Scientific, Inc. is a pioneer in developing and marketing technology products and services to healthcare providers to combat chronic diseases. Its flagship product, QuantaFlo®, which is patented and cleared by the
Forward-Looking Statements
This press release contains "forward-looking" statements. Such statements can be identified by, among other things, the use of forward-looking language such as the words "believe," "goal," "may," "will," "intend," "expect," "anticipate," "estimate," "project," "would," "could" or words with similar meaning or the negatives of these terms or by the discussion of strategy or intentions. The forward-looking statements in this release include express or implied statements about the proposed terms of the notes and capped call transactions, the completion, timing and size of the proposed offering of the notes and capped call transactions, the anticipated use of proceeds from the offering, the potential impact of the foregoing or related transactions on dilution to holders of our common stock, the market price of our common stock or the notes or the conversion price of the notes. Such forward-looking statements are subject to a number of risks and uncertainties that could cause Semler Scientific's actual results to differ materially from those discussed here, including but not limited to whether we will consummate the offering of notes on the expected terms or at all, which could differ or change based upon market conditions or for other reasons, and the other risk factors detailed in Semler Scientific's filings with the Securities and Exchange Commission. These forward-looking statements involve assumptions, estimates, and uncertainties that reflect current internal projections, expectations or beliefs. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. All forward-looking statements contained in this press release are qualified in their entirety by these cautionary statements and the risk factors described above. Furthermore, all such statements are made as of the date of this press release and Semler Scientific assumes no obligation to update or revise these statements unless otherwise required by law.
Investor Relations Contact:
Renae Cormier
Chief Financial Officer
ir@semlerscientific.com
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SOURCE Semler Scientific, Inc.
FAQ
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