Treace Medical Concepts, Inc. Announces Proposed Public Offering of Common Stock

Rhea-AI Summary

Treace Medical Concepts, Inc. (NasdaqGS: TMCI) has launched an underwritten public offering of $100 million in common stock, with an option for underwriters to purchase an additional $15 million. The funds raised will be allocated towards general corporate purposes, including research and development, sales and marketing, and capital expenditures. The offering, subject to market conditions, is backed by J.P. Morgan and Morgan Stanley as lead managers. Treace specializes in surgical treatments for bunions, with its patented Lapiplasty® 3D Bunion Correction™ procedure. The company aims to improve care standards for bunion surgery, addressing a significant patient population in the U.S.

Positive

• The proposed offering targets $100 million, which will finance research, development, and marketing efforts.
• The additional $15 million option may further enhance liquidity for corporate initiatives.

Negative

• The offering could lead to shareholder dilution depending on the final terms of the offering.
• Market conditions may affect the pricing and completion of the offering, creating uncertainty.

PONTE VEDRA, Fla., Feb. 07, 2023 (GLOBE NEWSWIRE) -- Treace Medical Concepts, Inc. (“Treace”) (NasdaqGS: TMCI), a medical technology company driving a fundamental shift in the surgical treatment of hallux valgus (commonly known as bunions) through its Lapiplasty® 3D Bunion Correction™ procedure, today announced that it has commenced an underwritten public offering of $100.0 million of shares of its common stock. All of the shares of the common stock are being offered by Treace and there are no selling stockholders in the proposed offering. In addition, Treace intends to grant the underwriters a 30 day option to purchase up to an additional $15.0 million of shares of its common stock. The proposed offering is subject to market and other conditions, and there can be no assurance as to whether or when the proposed offering may be completed, or as to the actual size or terms of the proposed offering.

Treace intends to use the net proceeds from the proposed offering for general corporate purposes, including research and development and sales and marketing activities, general and administrative matters and capital expenditures.

J.P. Morgan and Morgan Stanley are acting as lead book-running managers for the proposed offering. Stifel and Truist Securities are acting as book-running managers for the proposed offering. BTIG is acting as sole manager for the proposed offering.

The securities described above are being offered pursuant to a shelf registration statement (including a prospectus) filed with the U.S. Securities and Exchange Commission (“SEC”) on February 7, 2023, which automatically became effective upon filing. Copies of the preliminary prospectus supplement and the accompanying prospectus relating to the proposed offering will be filed with the SEC and will be available for free on the SEC's website at http://www.sec.gov. Alternatively, copies of the preliminary prospectus supplement and the accompanying prospectus relating to this offering, when available, may be obtained by contacting: J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at (866) 803-9204 or by email at prospectus-eq_fi@jpmorganchase.com; or Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014, or by email at prospectus@morganstanley.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, 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 Treace Medical Concepts

Treace Medical Concepts, Inc. is a medical technology company with the goal of advancing the standard of care for the surgical management of bunion and related midfoot deformities. Bunions are complex 3-dimensional deformities that originate from an unstable joint in the middle of the foot and affect approximately 65 million Americans, of which Treace estimates 1.1 million are annual surgical candidates. Treace has pioneered and patented the Lapiplasty® 3D Bunion Correction™ System – a combination of instruments, implants, and surgical methods designed to surgically correct all 3 planes of the bunion deformity and secure the unstable joint, addressing the root cause of the bunion and helping patients get back to their active lifestyles. Treace expanded its offering with the Adductoplasty® Midfoot Correction System, designed for reproducible surgical correction of the midfoot to provide further support to hallux valgus patients.

Forward-Looking Statements

This press release includes forward-looking statements, including statements regarding the completion, timing and size of the proposed offering and the intended use of the proceeds. Forward-looking statements represent Treace’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 the trading price and volatility Treace’s common stock and risks relating to Treace’s business, the grant to the underwriters of an option to purchase additional shares and, if the offering is priced, risks related to the satisfaction of closing conditions in the underwriting agreement related to the offering. Treace may not consummate the proposed offering described in this press release and, if the proposed offering is consummated, cannot provide any assurances regarding the final terms of the offer. The forward-looking statements included in this press release speak only as of the date of this press release, and Treace does not undertake to update the statements included in this press release for subsequent developments, except as may be required by law.

Contacts:

Treace Medical Concepts:
Mark L. Hair
Chief Financial Officer
mhair@treace.net
(904) 373-5940

Investors
Gilmartin Group
Lynn Lewis or Vivian Cervantes
IR@treace.net

FAQ

What is the size of Treace Medical Concepts' public offering?

Treace Medical Concepts announced a public offering size of $100 million, with an additional $15 million option for underwriters.

What will the proceeds from the TMCI offering be used for?

The net proceeds will be used for general corporate purposes, which include research and development, sales and marketing activities, and capital expenditures.

Who is managing Treace Medical's stock offering?

J.P. Morgan and Morgan Stanley are acting as lead book-running managers for Treace Medical's offering.

What risks are associated with TMCI's public offering?

The offering is subject to market conditions, which may impact its pricing and completion, potentially leading to shareholder dilution.