AtriCure ($ATRC) says it will pull in $23.5 million from a public offering to help the maker of ablation devices to treat atrial fibrillation boost its working capital.
The Ohio company will do this through a previously announced underwritten public offering of more than 3.4 million shares at $7.25 per share. Additionally, the underwriter can snatch up 521,250 more shares of common stock to cover any possible over-allotments. It's all part of a $50 million shelf registration statement AtriCure filed in July.
Where does the $23.5 million figure come from? That's what is left after all of the participating parties take out all of their discounts, commissions and other expenses. If all goes well, the funding will close Jan. 22.
The company has long been rumored to be an acquisition target, particularly since it gained FDA approval for its Synergy Ablation System in 2011--the first surgical device of its kind approved in the U.S. for atrial fibrillation. And AtriCure has been losing money, too. Beyond this new offering, it will have to think longer-term about how to ensure that its R&D slate can be shepherded to conclusion, and an acquisition could accomplish this beyond subsequent offerings.
For now, we will see how well the company uses its $23.5 million cash infusion.
- read the release
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