Key Points:
- Semler Scientific shares plummeted by as much as 15% following the announcement of their first convertible note offering along with fourth-quarter earnings.
- The company aims to generate $75 million through this debt offering, with an additional option for $15 million.
- A portion of the raised funds will contribute to increasing their Bitcoin holdings.
- Revenues for the quarter escalated to $12.5 million, compared to $12.1 million previously, and operational income rose from $3.4 million to $3.7 million.
Medical device developer Semler Scientific (SMLR) experienced a substantial drop of 15% post-U.S. trading hours on Thursday due to its proposed offering of $75 million in convertible senior notes, aimed in part at expanding their Bitcoin (BTC) inventory.
The company’s share price fell to $51, coinciding with the report that their fourth-quarter revenues had grown by 3.3% to $12.5 million, alongside an 8.8% increase in operational income to $3.7 million. Additionally, the unrealized gains from changes in the fair value of their Bitcoin holdings were approximately $29 million.
Part of the note sale proceeds, which includes an option for an additional $15 million, will finance capped-call transactions aimed to counteract share dilution from potential note conversions, according to the company.
The maturity of the notes is set for 2030, with interest payments made biannually. These notes can be converted into cash, stock, or both; full offering terms remain undisclosed.
As of January 17, Semler Scientific possessed 2,321 BTC at a total acquisition cost of $191.9 million and an average purchase price of $82,689.
