Stereotaxis Inc. (NSDQ:STXS) said it plans to raise $14.6 million through a public offering.
The St. Louis, Mo.-based cardiology instrument maker said the company will use the proceeds to support sales, marketing and clinical support efforts in addition to research and development and general corporate purposes.
Stereotaxis will offer 4 million shares at $3.65 each, according to its latest filing with the Federal Securities & Exchange Commission and expects to take in $13.7 million after underwriting and commissions. Oppenheimer & Co. Inc. is the sole book-running manager for the transaction.
On Wall Street, the company’s stock dipped after the announcement of the offering after market close on Nov. 10. Stereotaxis shares dropped 7.56 percent from its closing price of $4.00 the day before the announcement. Shares of STXS are currently trading at about $3.67 per share.
The company also announced a new $10 million term loan and extension until March 2012 for its $30 million revolving credit facility from Silicon Valley Bank.
“Our two primary objectives in negotiating an amendment to the facility were to extend the current revolving facility to March of 2012 and to obtain a longer maturity term loan to bridge the company’s capital structure through the repayment of other obligations due by the end of 2011,” said CEO Mike Kaminski in prepared remarks.
The new commitment from Silicon Valley Bank is contingent upon Stereotaxis raising $10 million in additional equity and as well as the recently completed extension of the $10 million guarantee from two unnamed shareholders, according to the company.
Stereotaxis said it reached an agreement with these shareholders to extend their guarantee through March 31, 2012 in exchange for options to purchase 800,000 shares of Stereotaxis common stock.
The company reported a loss of $5.1 million, or 10 cents per diluted share, on revenue of $13.9 million during the three months ended Sept. 30. That compares with a loss of $5.8 million, or 14 cents per diluted share, on sales of $13.3 million during the same period last year.