LOUISVILLE, Colo. - Biodesix, Inc. (NASDAQ:BDSX), a company specializing in diagnostic solutions for lung disease, has announced the pricing of a significant stock offering. The firm set the public offering price for 17,391,832 shares of its common stock at $1.15 each. Concurrently, Biodesix has priced a private placement of 760,857 shares of Series A Non-Voting Convertible Preferred Stock at $46.00 per share.
Following stockholder approval, each preferred share will convert into 40 common shares, totaling 30,434,280 common shares. The combined gross proceeds from both the public offering and the private placement are estimated to reach $55 million before expenses. These transactions are part of a capital-raising strategy, with the closing expected around April 9, 2024, subject to customary conditions and stockholder consent.
Participation in the private placement includes certain company management, directors, and funds linked to these directors. TD (TSX:TD) Cowen, William Blair, Canaccord Genuity (TSX:CF), and Lake Street Capital Markets are serving as financial intermediaries for these transactions.
This fundraising initiative is by Biodesix's mission to advance diagnostics in lung disease, leveraging artificial intelligence in multi-omics to develop tests that address critical clinical questions. The company provides several Medicare-covered tests for lung conditions and is known for its rapid-result diagnostic strategies for lung cancer patients.
The information presented is based on a press release statement.
InvestingPro Insights
As Biodesix, Inc. (NASDAQ:BDSX) embarks on its capital-raising journey with a new stock offering and private placement, current and potential investors may be keen to understand the financial health and market position of the company. According to InvestingPro data, Biodesix has a market capitalization of $146.38 million. Despite the company's innovative approach in the diagnostic space, it is important to note that Biodesix is not profitable over the last twelve months, which is reflected in its negative price-to-earnings (P/E) ratio of -2.33, adjusted to -2.81 for the last twelve months as of Q4 2023.
Moreover, the company's Price / Book ratio stands at a high 31.96 as of the same period, indicating that the stock is trading at a premium compared to the company's book value. This could suggest investor confidence in Biodesix's future growth or technology, despite the current lack of profitability. It's also noteworthy that the company does not pay a dividend, which could influence investment decisions for those seeking income-generating stocks.
For those considering an investment in Biodesix, it's crucial to keep these financial metrics in mind. Additional insights can be found in the InvestingPro Tips, which highlight the company's rapid cash burn and the fact that it is trading at a high Price / Book multiple. These factors could be particularly relevant given the company's recent pricing of its stock offering. For a deeper dive into Biodesix's financials and to access more tips, investors can explore the full range of InvestingPro Tips available at https://www.investing.com/pro/BDSX. There are a total of 4 InvestingPro Tips available, providing a comprehensive analysis of the company's financial status and market potential. Remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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