KORU Medical Prices Public Offering of Common Stock
June 19 2020 - 07:50AM
Business Wire
Repro Med Systems, Inc. d/b/a KORU Medical Systems (Nasdaq:
KRMD) (“KORU Medical”) today announced the pricing of its
previously announced underwritten public offering of 3,125,000
shares of its common stock at a public offering price of $8.00 per
share. The gross proceeds to KORU Medical before deducting the
underwriting discounts and commissions and estimated offering
expenses, are expected to be approximately $25 million. In
connection with the offering, KORU Medical has granted the
underwriters a 30-day option to purchase up to an additional
468,750 shares at the public offering price, less underwriting
discounts and commissions. The offering is expected to close on or
about June 23, 2020, subject to customary closing conditions.
Piper Sandler & Co. and Canaccord Genuity LLC are acting as
joint bookrunning managers for the offering. Craig-Hallum Capital
Group LLC is acting as lead manager.
KORU Medical currently intends to use the net proceeds from this
offering primarily for general corporate purposes and working
capital. General corporate purposes may include commercial
expansion (including by acquisition), clinical trials and
pharmaceutical initiatives, gross margin enhancement and new
product innovations, as well as other uses.
A shelf registration statement on Form S-3 relating to the
public offering of the shares of common stock described above was
filed with the Securities and Exchange Commission (the “SEC”) and
became effective on May 20, 2020. A preliminary prospectus
supplement relating to the offering has been filed with the SEC and
a final prospectus supplement relating to the offering will be
filed with the SEC. Copies of the final prospectus supplement and
accompanying prospectus, when available, may be obtained from Piper
Sandler & Co., Attention: Prospectus Department, 800 Nicollet
Mall, J12S03, Minneapolis, MN 55402, or by email at
prospectus@psc.com, or by phone at (800) 747-3924; or from
Canaccord Genuity LLC, Attention: Syndicate Department, 99 High
Street, 12th Floor, Boston, MA 02110, or by telephone at (617)
371-3900, or by email at prospectus@cgf.com.
This press release shall not constitute an offer to sell nor the
solicitation of an offer to buy, nor shall there be any sale of
securities in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction.
About KORU Medical Systems
KORU Medical Systems develops, manufactures, and commercializes
innovative and easy-to-use specialty infusion solutions that
improve quality of life for patients around the world. The FREEDOM
Syringe Infusion System currently includes the FREEDOM60® and
FreedomEdge® Syringe Infusion Drivers, Precision Flow Rate Tubing™
and HIgH-Flo Subcutaneous Safety Needle Sets™. These devices are
used for infusions administered in the home and alternate care
settings. For more information, please visit
www.korumedical.com.
Forward Looking Statements
This press release includes forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
on our current expectations and projections about future events. In
some cases, forward-looking statements can be identified by
terminology such as “may,” “should,” “potential,” “continue,”
“expects,” “anticipates,” “intends,” “plans,” “believes,”
“estimates,” and similar expressions. These statements are based
upon current beliefs, expectation, and assumptions and include, but
are not limited to, statements about KORU Medical’s expectations
regarding its capital raising efforts, including the commencement
of the public offering, the actual size or terms of the offering,
the underwriters’ exercise of their option to purchase additional
shares and KORU Medical’s intended use of proceeds. These
statements are subject to a number of risks and uncertainties, many
of which are difficult to predict, including market conditions,
whether the proposed offering is completed, the success of KORU
Medical’s plans, and the other factors described in KORU Medical’s
filings with the SEC. The information in this release is provided
only as of the date of this release, and KORU Medical undertakes no
obligation to update any forward-looking statements contained in
this release based on new information, future events, or otherwise,
except as required by law.
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Contact for Investors: The Equity Group Inc. Devin
Sullivan Senior Vice President 212-836-9608 dsullivan@equityny.com
Kalle Ahl, CFA Vice President 212-836-9614 kahl@equityny.com
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