The agreement, made with an undisclosed “healthcare-focused” institutional investor, according to a news release, includes more than 8.5 million shares of Conformis’ common stock, accompanying warrants to purchase up to the same amount of shares and pre-funded warrants to purchase nearly 9.5 million shares, with warrants accompanying those as well.
Shares in the sale and accompany warrants are being sold in units, each with one share of common stock or a pre-funded warrant to purchase one share and a warrant to purchase a share at an offering price of $0.9581 per unit. The pre-funded warrants, which are exercisable immediately, have an exercise price of $0.0001 per share.
Warrants in the sale have an exercise price of $0.8748 per share and will expire five years from the date of issuance. The offering is expected to close on Sept. 28, 2020. Oppenheimer & Co. Inc. is acting as the sole placement agent for the offering.
Billerica, Mass.-based Conformis intends to use the net proceeds for general corporate purposes, such as research and development, sales and marketing, clinical studies, manufacturing development, acquisitions, repaying and refinancing debt, working capital and capital expenditures, according to a news release.