Sunshine Heart Inc. intends to offer 919,540 class A units and 6,400 class B units.
Each class A unit will consist of 1 common share and 1 warrant to purchase a common share. Each class B unit will consist of 1 series E convertible preferred stock, convertible at any time at the holder's option into a number of common shares equal to $1,000 divided by the conversion price, and warrants to purchase common shares equal to $1,000 divided by the conversion price at a public offering price of $1,000 per class B unit.
The class B units are being offered to buyers who prefer not to own more than 4.99% of Sunshine Heart's outstanding common stock.
Sunshine Heart is commencing the offering to regain compliance with the Nasdaq Capital Market's minimum $2.5 million shareholders' equity requirement and to raise funds for its operations and growth.
The company expects net proceeds from the offering to be about $7.1 million after deducting commissions and estimated offering expenses.
Ladenburg Thalmann & Co. Inc. is acting as the underwriter for the offering.