NeuroPace (Nasdaq:NPCE) today announced that it intends to sell common stock in an underwritten public offering worth $65 million.
Mountain View, California-based NeuroPace plans to grant underwriters a 30-day option to purchase up to an additional 15% of the shares of its common stock offered in the public offering as well.
The company expects to use a substantial portion of the proceeds to repurchase all shares held by stockholder KCK Ltd. It plans for that purchase to take place at a price per share equal to that in the public offering.
NeuroPace plans to use the remaining net proceeds for general corporate purposes. That could include clinical trial and R&D expenses, selling, general and administrative expenses, debt reduction and working capital. J.P. Morgan, Cantor, Wells Fargo Securities and Leerink Partners serve as joint book-running managers for the offering. Lake Street Capital Markets serves as lead manager for the offering.
The company develops the FDA-approved RNS system for treating epilepsy. NeuroPace designed its RNS system as a brain-responsive neuromodulation system. It features closed-loop technology that delivers personalized, data-driven treatment targeted to the seizure source. It does so by continuously monitoring brain activity and recognizing unique seizure patterns. As a result, the system can respond in real time with stimulation to prevent a seizure.
