SSHSunshine Heart Inc (NASDAQ:SSH) announced that it has entered into a definitive agreement with a healthcare dedicated institutional investor for an offering of shares of two series of convertible preferred stock with gross proceeds of $3.8 million in a registered direct offering and concurrent private placement.

In connection with the offering, the Company will issue 2,900 registered shares of Series C Convertible Preferred Stock (which, subject to adjustment, will be convertible into a total of 17,058,824 shares of common stock at an initial conversion price of $0.17).  Concurrently, in a private placement, the Company will issue 900 unregistered shares of Series D Convertible Preferred Stock (which, subject to adjustment, will be convertible into a total of 5,294,118 shares of common stock at an initial conversion price of $0.17). Also in the private placement, the investors in the offering will receive warrants to purchase shares of common stock exercisable for up to 22,352,941 additional shares of common stock, in the aggregate. The warrants have an exercise price of $0.18 per share, subject to adjustment, and are exercisable for 5 years commencing on the later of the receipt of stockholder approval of the transactions and six months from the closing date. Subject to the satisfaction of customary closing conditions, the initial closing of the offering and private placement is expected to take place on or about November 3, 2016 with a second closing to take place within three business days following stockholder approval of the transactions, if received.  The shares of Series C Convertible Preferred Stock and Series D Convertible Preferred Stock are not convertible into, and the warrants are not exercisable for, shares of common stock if and until the Company’s stockholders approve the transactions. (Original Source)

Shares of Sunshine Heart Inc closed last Friday at $0.25, down $0.05 or -15.25%. SSH has a 1-year high of $2.55 and a 1-year low of $0.24. The stock’s 50-day moving average is $0.60 and its 200-day moving average is $0.70.

Sunshine Heart, Inc. engages in the provision of cardiac and coronary disease products. Its activities include development, manufacture and commercialization of medical devices for the treatment of heart failures and diseases. It markets its products under the C-Pulse System brand. The company was founded by Crispin Marsh and William S. Peters in November 1999, and is headquartered in Eden Prairie, MN.