LDR yesterday offered 5 million shares, aiming for a raise of about $66.8 million, or up to 5.75 million shares for $77.2 million with full exercise of over-allotment options. The company moved about 4.28 million shares by the close of market yesterday, at which point the stock had jumped 29% to close at $19.35.
The company plans to use part of the proceeds to fund U.S. commercial launch of the Mobi-C device, a cervical disc replacement for patients with degenerative disc disease, as well as to expand sales and marketing around the world, according to documents filed with the Securities & Exchange Commission.
Other planned costs include:
- approximately $6.5 million to continue to invest in our research and development program;
- approximately $17.6 million to satisfy obligations to the holders of our Series C preferred stock under the Series C Voting Agreement in which such holders agreed to vote all of their shares of preferred stock in favor of the conversion of preferred stock to common stock in connection with this offering, which vote is necessary for our preferred stock to convert into common stock because, based on the price range indicated on the cover of this prospectus, this offering is not a “qualified public offering” as defined in our certificate of incorporation;
- approximately $2.8 million to repay the portion of our convertible notes that will not be converted into shares of our common stock upon the consummation of this offering;
- approximately $10.0 million to repay all outstanding indebtedness under our loan facility with Escalate Capital Partners; and
- the balance for working capital and general corporate purposes.