Tandem Diabetes Care (NSDQ:TNDM) today priced an underwritten public offering of 4,630,000 shares of its common stock, Series A warrants and Series B warrants to buy 4,630,000 shares of common stock at $3.50 apiece.
The San Diego, Calif.-based company said it expects to bring in $16.2 million in gross proceeds from the offering.
The offering’s Series A warrants have an exercise price of $3.50 apiece and are immediately exercisable, expiring on the fifth anniversary of the issuance date. The Series B warrants have the same exercise price and are slated to expire six months after the issuance date, Tandem reported.
The company plans to use the proposed offering’s net proceeds for working capital and other general corporate purposes. The offering is expected to close on Oct. 17.
Earlier this week, Tandem shareholders approved a 1-for-10 reverse stock split.
In a statement filed with the SEC in July, the San Diego, Calif.-based company told shareholders that it believed a reverse stock split would help Tandem keep its common stock listed on the Nasdaq market and make its stock more attractive to institutional investors.
“The implementation of this reverse stock split will provide us with flexibility in our capital structure to pursue financing alternatives in support of our business plan and to bring new innovations to people with diabetes,” president & CEO Kim Blickenstaff said in prepared remarks.
TNDM shares were trading at $2.99 apiece in morning activity today, down -36%.
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