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Sunshine Heart Brings in $9.2M from Latest Offering

Altogether, the heart device company has attracted upwards of $100 million in its 18 years of business.

Sunshine Heart announced the closing of its underwritten public offering this week, during which it raised $9.2 million that will go toward its effort to maintain the company’s listing on the Nasdaq stock exchange.
 
With the latest cash raise, the Eden Prairie-based medical device maker sold 2.8 million shares of common stock for $1 each, and 6,400 shares of preferred stock (convertible to 6.4 million common shares) for $1,000 per unit.
 
In recent months, the company has struggled to keep its stock priced above the $1 minimum, while sustaining $2.5 million in stockholders’ equity, both of which are requirements made by the Nasdaq.
 
Sunshine Heart tried to overcome those hurdles in January when investors approved a 30-for-1 reverse stock split. Each share, after the switch, was boosted from about 30 cents a piece to roughly $8. However, since then, the price per share has steadily dwindled, falling back below $1.
 
Meanwhile, the company is facing a May 10 deadline to regain compliance. Sunshine Heart was warned numerous times by Nasdaq that it was not maintaining the criteria to continue its listing. However, in late March, it received another extension to regain compliance.
 
Jeff Mathiesen, the former chief financial officer at the company, told TCB in 2014 after the company finished raising $46 million that its status as a public company was crucial to its ability to raise money. Without funding, the company would have a harder time surviving given the expensive testing required to get FDA approval for its products. To date, the company’s flagship device, the C-Pulse Heart Assist System, is only available in Europe.
 
Sunshine Heart ended its fiscal year 2016 with a $2.9 million net loss on sales of $746,000 in the fourth quarter. For the full year, the company lost $15.8 million on sales of about $1.3 million.
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