Senseonics (NYSE:SENS) posted a $200 million offering of common stock, preferred stock, debt securities and/or warrants, including an agreement for Jefferies to handle $50 million.
The total offering includes the company’s common stock, which was trading at $1.03 per share in midday trading today. Senseonics — which makes glucose monitoring products — said the securities in the offering may be sold directly to investors, through agents or underwriters or dealers on a continuous or delayed basis.
The $50 million in common stock included in the offering may be sold by Jefferies by any method permitted by the law. According to Senseonics’ SEC filing last week, Jefferies will use commercially reasonable efforts to sell the common stock from time to time, based upon Senseonics’ instructions.
Senseonics is slated to pay Jefferies a commission equal to 3% of the gross sales proceeds of any common stock sold by Jefferies under the agreement, while the company has also offered Jefferies customary indemnification rights.
In Senseonics’ prospectus, the company opted to use “broad discretion” over the use of the proceeds earned through the offering. Without delving into deep detail, the company said proceeds will be used for working capital, capital expenditures and general corporate purchases.
The company did add that a portion of the proceeds may be used to invest in or acquire businesses or technologies that it believes are complementary to its own. However, Senseonics currently has no plans, commitments or agreements regarding any acquisitions.
Senseonics designs and develops glucose monitoring products, including the Eversense CGM system platforms. The company announced reimbursement wins for Eversense three times over September and October of this year. It won reimbursement from Blue Cross Blue Shield of Massachusetts and Idaho, then Health Care Service Corporation – Blue Cross Blue Shield and finally from Humana.