Pulse Biosciences (Nasdaq:PLSE) announced today that it entered into a stock purchase agreement to raise approximately $65 million.
Hayward, California-based Pulse Biosciences entered into the agreement with Robert Duggan, the company’s executive chair. Duggan agreed to purchase 10,022,937 shares of the company’s common stock at $6.51 per share. That marks a greater than 1% premium over the last reported sale price of Pulse common stock on April 28, 2023.
Upon the closing of the private placement, all indebtedness owed to Duggan will be canceled as consideration for the shares. That includes the principal balance of $65 million and accrued and unpaid interest of approximately $0.25 million.
Pulse Biosciences develops its novel and proprietary nanosecond pulsed field ablation (nsPFA) technology. It also develops the proprietary CellFX System for the treatment of AFib.
“Upon closing, this transaction eliminates our debt and this capital will strengthen our balance sheet to provide us greater flexibility to develop both our nsPFA cardiac ablation catheter and cardiac ablation clamp devices,” said Kevin P. Danahy, CEO of Pulse Biosciences. “We appreciate Bob’s continued support and leadership. He is a remarkable supporter of our team, technology and mission. We are committed to delivering the clinically differentiated benefits of nsPFA technology for the betterment of as many patients as possible.”
Duggan beneficially owns approximately 62% of Pulse Biosciences. Following the private placement, he becomes the beneficial owner of approximately 69% of the company. At the time of Duggan’s original loan to the company (September 2022), its stock sat under $1.50 per share. Shares ticked up 7.4% to $6.91 in midday trading today.
Pulse Biosciences plans to facilitate the private placement directly without incurring investment banking or placement fees. The company expects to close the placement on or about May 8, 2023, subject to preclosing conditions.