In Friday’s premarket session, shares of Sonendo Inc. (NASDAQ: SONX) surged 43.31% to $1.30 after a private placement deal. SONX stock dropped -7.44% to $0.91 in the last trading session.
What type of financing has SONX entered into?
An offering of pre-funded warrants and common stock was announced by Sonendo (SONX) today. In this private placement, SONX will raise $63 million by issuing common stock and pre-funded warrants. Among the participants in the financing are JMR Capital, Pura Vida Investments, First Light Asset Management, Driehaus Capital Management, Blue Water Life Science Advisors, and ArrowMark Partners.
SONX’s cutting-edge technology has demonstrated a strong potential for revolutionizing the dental market, especially as endodontists and dentists become more aware of how it can significantly improve their practices, as a result of First Light’s extensive due diligence. In addition to its innovative technology platform, Sonendo has a skilled management team and scalable business model. By securing this financing, Sonendo will be positioned to enter an exciting new phase of growth, improved margins, and significant value creation.
Gross proceeds of approximately $63 million will be received by SONX from the financing, after deducting placement agent fees and other estimated offering expenses. In addition to accelerating ongoing commercialization efforts and expanding its product portfolio, Sonendo intends to use the net proceeds for working capital and other general corporate purposes.
A total of 23,045,536 shares of its common stock (“Common Stock”) will be purchased under the securities purchase agreements entered into with the investors. Through a private investment in public equity financing, the offering will be at a price of $0.95 per share, plus pre-funded warrants (“Pre-Funded Warrants”) that authorize the purchaser to purchase 43,315,846 shares of Common Stock at a price of $0.949 per pre-funded warrant.
In addition to having an exercise price of $0.001 per share of Common Stock, the Pre-Funded Warrants will be exercisable immediately and will remain exercisable until fully exercised. The financing is expected to close on or about September 27, 2022, based on customary closing conditions being met.
What will SONX gain from this?
This financing strengthens SONX’s balance sheet, enabling it to continue improving patient care and developing innovative products for saving teeth. With the financing, Sonendo is able to continue delivering superior clinical results and improving patient experiences and will be supported in its growth and innovation journey.