#United States #Santa Clara #Finance #Semler Scientific #QuantaFlo

Semler Scientific Announces Pricing of Upsized Convertible Notes

Semler Scientific, Inc. (Nasdaq: SMLR), a leader in healthcare technology, has officially announced the pricing details of its latest offering of convertible senior notes. The offering, which has been increased to an impressive total of $85 million, represents a significant step for the company as it continues to advance its corporate objectives and enhance its position in the healthcare market.

Details of the Offering

Originally proposed at $75 million, the offering has seen a successful upsizing. It consists of convertible senior notes with a fixed interest rate of 4.25% due in 2030. These notes are targeted toward institutional buyers qualified under Rule 144A of the Securities Act of 1933. Investors can expect a closing date for the offering set for January 28, 2025, provided all standard closing conditions are met.

Additionally, an option is available for the initial purchasers to buy up to an extra $15 million in notes during the first 13 days following the issuance of the initial notes.

Key Notes of the Offering

The convertible notes are characterized by an attractive 25% conversion premium, and the cap on transaction prices is set at approximately $107.01 per share of Semler's stock, a significant 75% increase from its last reported market price. This capability is expected to reduce potential dilution of shares resulting from conversions of the notes.

Financial vs Market Impacts

Semler aims to use the proceeds from this offering to invest in various corporate strategies, with approximately $6.6 million allocated to cover costs associated with capped call transactions linked to this offering. Notably, the remainder of the funds will be dedicated to pursuing general corporate purposes, including investments in Bitcoin, highlighting Semler’s innovative approach to asset management.

What Are Capped Call Transactions?

In conjunction with the sale of the notes, Semler Scientific entered into capped call transactions with selected financial institutions, which will help balance the possible dilution of its stock from these convertible notes. These transactions are crucial as they cap the share price's potential increase, thus stabilizing the market performance post-conversion.

Strong Financial Position and Future Plans

With their growing portfolio and commitment to pioneering healthcare solutions, Semler Scientific is well-positioned for continued growth. The company's flagship product, QuantaFlo®, a rapid point-of-care test for cardiovascular diseases, showcases their commitment to innovation in healthcare technology. Seeking further expansion into Bitcoin investments also reflects a forward-thinking strategy aimed at asset diversification.

Semler Scientific maintains that the successful closure of this offering will bolster its standing within the competitive healthcare technology landscape, thus allowing better funding for future research and development initiatives.

Conclusion

As Semler Scientific continues to innovate and expand, the upsize of this offering demonstrates robust market confidence and solid financial strategies. Investors and stakeholders alike have much to look forward to as Semler Scientific embarks on this promising new phase of growth.

For further inquiries or to learn more about Semler's offerings, interested parties can reach out through their investor relations department.