Silk Road Medical (NSDQ:SILK) announced that it commenced a proposed underwritten public offering of $100 million in common stock.
The Sunnyvale, California–based stroke treatment tech company plans to use proceeds to expand its sales force and operations. It also intends to increase its R&D activities, conduct or sponsor clinical trials and lease new facilities. Silk Road wants to expand internationally, too, while additional funds may go toward working capital and other corporate purposes.
Silk Road said in a news release that it plans to grant underwriters a 30-day option to purchase additional shares. That option allows underwriters to purchase common stock in an amount of up to 15% of the number of shares sold in the offering.
The company said the offering is subject to market and other conditions. It offered no assurance as to whether it may complete the offering and no guarantee of the actual size or terms of it.
Silk Road said it also may use a portion of the proceeds to repay debt. It also may use funds to acquire or license complementary products, technologies, intellectual property or businesses. However, no such agreements or commitments exist at present.
J.P. Morgan and BofA Securities are acting as joint book-running managers of the offering. Stifel is also acting as book-running manager, and Wolfe Capital Markets and Advisory is acting as co-manager.
