Outset Medical Announces Private Placement Financing and New Debt Agreement

Outset Medical, Inc. (NASDAQ: OM) revealed, in an 8-K form filed on January 3, 2025, several significant financial transactions. The company entered into securities purchase agreements for the issuance of 863,340 shares of Series A Non-Voting Convertible Preferred Stock in a private placement offering. The private placement agreements include provisions for stockholder approval of the conversion of the preferred stock into common stock and the issuance of preferred stock to management and board members.

The investors have agreed to purchase the Series A Preferred Stock at $200.00 per share, amounting to a total of around $172.7 million. Outset Medical plans to utilize the net proceeds for general corporate purposes. Additionally, the company has entered into a Registration Rights Agreement with investors for the registration of the common stock issuable upon conversion of the preferred stock.

Following the closing of the private placement, Outset Medical anticipates having approximately 52,943,808 shares of Common Stock issued and outstanding, with a pro forma issuance of approximately 268,778,808 shares on a fully converted basis. Simultaneously, the company signed a senior secured credit facility for borrowings up to $125.0 million, which will be used to repay existing debts under two senior secured credit facilities.

Outset Medical also announced unaudited revenue figures for the fourth quarter of 2024, amounting to $29 million and a total revenue of $113 million for the fiscal year. The company expressed its expectations to retire $200 million in prior debt using proceeds from the new credit facility.

The private placement, the credit facility agreement, and the repayment of prior debts are expected to be finalized around January 8, 2025. Outset Medical highlighted the importance of stockholder approval for certain transactions and addressed compliance with registration regulations in the United States.

Forward-looking statements in the press release reflect potential implications of the financing transactions and the company’s revenue projections for 2024. Outset Medical underlined that actual outcomes may vary due to market conditions and regulatory requirements.

Outset Medical, Inc., known for pioneering dialysis technology with the Tablo Hemodialysis System, foresees these financial initiatives as pivotal in advancing its mission to enhance dialysis delivery efficiency and patient care. Interested parties can find additional details in the official filing documents of the company.

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

About Outset Medical

Outset Medical, Inc, a medical technology company, engages in the development of a hemodialysis system for hemodialysis in the United States. The company offers Tablo Hemodialysis System, a compact console with integrated water purification, on-demand dialysate production, and software and connectivity capabilities for dialysis care in acute and home settings; and manufactures, supports, and distributes for Tablo console, Tablo cartridge, and other consumables.