Electromed Inc. (NASDAQ:ELMD) sold 200,000 additional shares of stock to the underwriter of its initial public offering, Feltl & Co. Inc., in an over-allotment option.
The $4.00-per-share deal will bring the IPO’s net proceeds to approximately $6.0 million after deducting underwriting discounts and commissions and offering expenses, according to the New Prague, Minn.-based respiratory device maker. Electromed makes the SmartVest airway clearance system, which uses high-frequency chest wall oscillation to help clear the lungs of mucus and other secretions.
Electromed sold 1.7 million shares for $4.00 each and granted Feltl & Co. warrants to purchase 170,000 shares for $4.80 each, plus an over-allotment option to purchase 255,000 more shares, according to a federal Securities & Exchange Commission filing.
Electromed said it plans to use the proceeds to hire new sales and administrative employees, continue its research and development efforts and pay down a portion of existing indebtedness. The company is also planning equipment purchases.