Tivic Health (Nasdaq:TIVC) announced that it priced a public offering of common stock at $1.4 million.
San Francisco-based Tivic intends to offer 33.173 million shares of common stock at $0.041 per share. The company plans to use the net proceeds for working capital and general corporate purposes.
Tivic expects the offering to close on or about Aug. 9, subject to customary closing conditions, according to a news release. Maxim Group LLC serves as the sole placement agent for the offering on a reasonable best-efforts basis.
The closing of the offering may come just days before a vital special stockholders meeting for Tivic. Last week, CEO Jennifer Ernst issued a letter to investors updating them on the current situation at the bioelectronic medicine developer. Ernst’s letter stated that the company took several measures to fortify its position, including a workforce reduction and internal restructuring. The company did not disclose further details about the reduction or restructuring.
San Francisco-based Tivic filed an SEC Form 8-K pertaining to a notice of delisting from the Nasdaq market. Nasdaq notified Tivic in January that its closing price fell below $1 for 30 consecutive trading days. It received a six-month grace period to regain compliance.
Tivic recommended a reverse stock split to remedy the issue, but failed to pass the measure at its annual meeting of stockholders in June. The company set a special stockholder meeting for Aug. 11 and urged investors to vote in favor of a reverse split.
