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EDAP Shares Drop After $28M Equity Raise At 20% Discount; Sees Q1 Sales Between €10M-€10.4M

  • EDAP TMS SA (NASDAQ: EDAPhas priced its 4.15 million American Depositary Shares offering at $6.75 per ADS for approximately $28 million. 
  • The offer price is at a 20% discount from the last close price of $8.45 on Thursday. See the offering prospectus.
  • The company intends to use the net proceeds to accelerate the market penetration, adoption of high-intensity focused ultrasound (HIFU) in the U.S., advance development programs, and working capital, and other general corporate purposes.
  • In FY 2020, total revenue in the HIFU business decreased 19% Y/Y to €11.4 million. But for Q4 2020, sales from the HIFU business were up 50.8% at €4.4 million.
  • The company also announced it expects Q1 2021 sales to be between €10.0 million and €10.4 million, primarily driven by strength in its Distribution division, compared to €7.6 million a year ago.
  • It sees gross margin in the range of 40% and 44%, compared to 40.2% in Q1 2020.
  • Expected cash and equivalents to stand at approximately €24.4 million.
  • Price Action: EDAP shares dropped 13.4% at $7.32 in premarket trading on the last check Friday.

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