NeuroPace (NASDAQ:NPCE) Announces Equity Offering and Stock Repurchase Plan

NeuroPace Inc. recently disclosed in an 8-K filing with the Securities and Exchange Commission that it has entered into an underwriting agreement with J.P. Morgan Securities LLC for an Equity Offering. This agreement involves issuing and selling 6,500,000 shares of NeuroPace’s common stock at a price of $10.00 per share. The total net proceeds from this offering are anticipated to be around $60.6 million after deduction of underwriting discounts, commissions, and offering expenses. The Equity Offering is set to conclude on February 18, 2025, subject to customary closing conditions.

Additionally, NeuroPace intends to utilize $49.5 million from the net proceeds to repurchase 5,270,845 shares from its significant stockholder, KCK Ltd., at $9.40 per share, a transaction referred to as the Stock Repurchase. The remainder of the net proceeds from the Equity Offering, alongside funds from the Underwriters’ Option, will be allocated towards various corporate purposes, including research and development expenses, debt reduction, and working capital.

The Underwriting Agreement includes standard representations, warranties, and conditions, indemnification obligations, as well as termination provisions. This Equity Offering aligns with NeuroPace’s registration statement on Form S-3, declared effective by the SEC on November 22, 2022, and a corresponding prospectus supplement.

NeuroPace highlighted that the Equity Offering was issued pursuant to the aforementioned registration statement and a prospectus supplement. The company emphasized that the forthcoming completion of this transaction remains subject to certain customary closing conditions. Importantly, NeuroPace emphasized that the offering is connected with forward-looking statements and cautioned that actual results may differ from those projected due to market conditions and fulfilling customary closing requirements.

Investors were urged to consider the risks and uncertainties related to the Equity Offering and Stock Repurchase, as outlined in the Risk Factors section of the company’s public filings. NeuroPace reiterated its commitment to updating information while remaining compliant with applicable laws.

In the same filing, NeuroPace provided details on an Underwriting Agreement, an opinion from Cooley LLP, as well as related financial statements and exhibits. The company’s leadership expressed confidence in the planned use of proceeds and highlighted the importance of the Equity Offering in supporting NeuroPace’s strategic financial goals.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read NeuroPace’s 8K filing here.

NeuroPace Company Profile

NeuroPace, Inc operates as a medical device company in the United States. The company develops RNS system, a brain-responsive neuromodulation system that delivers personalized, real-time treatment at the seizure source for treating medically refractory focal epilepsy. It also records continuous brain activity data and enables clinicians to monitor patients in person and remotely.