iRhythm Technologies (NSDQ:IRTC) yesterday priced a stock offering worth at least $100 million it plans to use in part to fund a co-development deal with Alphabet (NSDQ:GOOGL) life sciences unit Verily.
The 1.37-million-share flotation includes a 30-day underwriters option on another 205,000 shares that would add $15 million if exercised in full. The offering is slated to close Sept. 10, the San Francisco-based company said.
Earlier this week iRhythm said it inked a deal worth nearly $13 million with Verily to develop AI-based screening, diagnosis and management technology for atrial fibrillation. The agreement to integrate Verily’s data analytics into iRhythm’s AI-based arrhythmia diagnosis technology calls for an up-front payment to Verily of $5 million, plus nearly $6.8 million in development and regulatory milestones, San Francisco-based iRhythm said. All told the company plans to set aside $30 million to $35 million for the Verily program.
iRhythm has estimated the net proceeds to be $93.3 million (or $107.4 million with a fully exercised over-allotment).
J.P. Morgan and Morgan Stanley are joint book-runners for the offering.
IRTC shares, which closed down -1.6% at $73.33 apiece yesterday, were up 1.3% to $74.30 each in pre-market trading today.