The maker of visual prosthetic implants for blind individuals priced the offering of 7.5 million common stock shares at $1 per share last week, with Fordham Financial Management’s ThinkEquity division acting as a representative of the underwriters in the offering.
On May 5, the offering closed, with net proceeds to the company reaching about $6.8 million after deducting discounts and commissions, according to a news release.
Underwriters received discounts and commissions of 7.5% of the gross cash proceeds from the offering, while the representative and its designees received warrants to purchase 375,000 shares of common stock exercisable at $1.25 per share and reimbursed at $100,000 for out-of-pocket expenses.
Second Sight intends to use the proceeds for accrued expenses, working capital and general corporate purposes. Those expenditures may include partnerships, business combinations, acquisitions or investments. The company’s total expenses for the offering are approximately $120,000.
The company had said in March that it was winding down its operations amid the financial shock of the COVID-19 pandemic. At the time, Second Sight said it would lay off 84 of its 108 employees and will retain an adviser experienced in winding down operations to guide the board on the next steps. Company officials expected additional layoffs.
Last month, Second Sight said it took steps to reduce overhead and conserve liquidity ahead of potential partnering, acquiring, or combining with businesses, just days before pricing the offering.