Biodesix Inc. (Nasdaq: BDSX), a life sciences company specializing in the development of tools for detecting lung diseases, has launched a new public offering of 30.5 million shares to meet the terms of a new $50 million line of credit with a healthcare investment company.
The company plans to raise $35.1 million with its public offering, for which William Blair & Co. acts as sole bookkeeper, Biodesix disclosed in a series of U.S. Securities and Exchange Commission disclosures this week. The offer is expected to close on November 21
The underwriters of the agreement will be granted a 30-day option to purchase up to an additional $4.5 million of common stock at the public offering price of $1.15 per share.
“Net proceeds from the offering are expected to be used for business expansion of sales, support of its product portfolio, research and development, and general corporate purposes,” Biodesix said.
Investor Perceptive Advisors LLC’s $50 million term loan facility “is conditional on the company raising at least $30 million in gross proceeds through the sale of its equity securities, [and] is part of a strategic fundraising effort to strengthen the company’s balance sheet, reduce near-term cash usage and enable the continued growth trajectory of the core pulmonary diagnostics business,” Biodesix said.
“The proceeds of this debt offering will be used for repayment of existing credit facilities, working capital and general corporate purposes, including the expansion of commercialization activities for the five Medicare-reimbursed pulmonary diagnostic tests of the society.”
The loan will be disbursed in one tranche of $30 million with two additional tranches of $10 million each available as needed.
“This financing provides Biodesix with significant flexibility and strengthens our balance sheet, positioning us to continue to build on the growth momentum we have experienced over the past several quarters,” said Biodesix Chief Operating Officer Robin. Harper Cowie, in a prepared statement. “We are pleased to have the support of Perceptive, which is a recognized leader in growth capital financing.”
Biodesix strengthens its balance sheet as it prepares to move into a new 80,000 square foot facility, a former Kohl’s Corp. clothing store. (NYSE: KSS) in Louisville which the company is converting into a laboratory and offices. .
This week’s financial maneuverings appear to have satisfied Wall Street as Biodesix’s stock price has jumped more than 25% in the past five days.
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