CHF Solutions, Inc. (CHFS) Shares Take a Hit on Back of Share Dilution
Shares of CHF Solutions, Inc. (NASDAQ:CHFS) slumped on Wednesday, falling 42% as of 9:45AM EST, following the announcement of a dilutive equity offering.
The medical device company priced an underwritten public offering of Series F convertible preferred stock, together with warrants, for gross proceeds of $18.0 million, prior to deducting underwriting discounts and commissions and offering expenses payable by CHF Solutions.
The Series F preferred stock is convertible into shares of the company’s common stock at a conversion price of $4.50 per share. Each share of Series F preferred stock will be accompanied by a Series 1 warrant, which expires on the first anniversary of its issuance, to purchase 223 shares of the company’s common stock at an exercise price of $4.50 per share, and a Series 2 warrant, which expires on the seventh anniversary of its issuance, to purchase 223 shares of the company’s common stock at an exercise price of $4.50 per share.
The Series F preferred stock and the warrants are immediately separable and will be issued separately. The closing of the offering is expected to take place on or about November 27, 2017, subject to the satisfaction or waiver of customary closing conditions.
A total of 18,000 shares of Series F preferred stock convertible into approximately 4 million shares of common stock, and warrants to purchase approximately 8 million shares of common stock will be issued in the offering.
CHF Solutions, Inc. is an early-stage medical device company, which provides products for the treatment of fluid overload specifically for cardiac and coronary diseases.. It engages in the development, manufacture, and commercialization of Aquadex FlexFlow System, which provides an ultrafiltration treatment for patients with failed diuretic therapy and require hospitalization.