Semler Scientific Shares Drop 15% After Announcing $75 Million Note Offering
Semler Scientific (SMLR) shares fell 15% after announcing a $75 million sale of convertible senior notes, increasing to $85 million with an additional option. The funds will contribute to its bitcoin holdings.
- Shares dropped to $51, indicated 8% lower in pre-market trading.
- The notes have a 4.25% interest rate and expire in 2030.
- Initial conversion price set at $76.44, a 2% premium over Thursday's closing price.
- Proceeds include $6.6 million for capped-call transactions to limit equity dilution.
- Fourth-quarter revenue rose 3.3% to $12.5 million; operating income increased by 8.8% to $3.7 million.
- Unrealized gain from bitcoin holdings was approximately $29 million.
- As of January 17, Semler held 2,321 BTC, purchased for $191.9 million at an average price of $82,689.