PLSE Stock Price Increases Over 48%: Why It Happened

By Amit Chowdhry ● Jul 1, 2021
  • The stock price of Pulse Biosciences Inc (NASDAQ: PLSE) increased by over 48% during intraday trading. This is why it happened.

The stock price of Pulse Biosciences Inc (NASDAQ: PLSE) – – a novel bioelectric medicine company commercializing the CellFX System powered by Nano-Pulse Stimulation (NPS) technology – increased by over 48% during intraday trading. Investors are responding positively to Pulse Biosciences announcing that it has entered into a stock purchase agreement with Robert W. Duggan, an experienced life sciences executive and the company’s Board Chairman for the purchase of 3,048,780 shares of the company’s common stock at a price of $16.40 per share, the last reported sale price of the company’s common stock on June 30, 2021, the immediately preceding trading day. 

All the indebtedness owed by the company to Duggan pursuant to the loan agreement between Duggan and the company dated as of March 11, 2021, including the principal balance of $41 million and accrued and unpaid interest of $0.6 million will be paid through the cancellation and extinguishment of such indebtedness and the issuance of the common stock shares in the private placement. 

As part of the private placement, Duggan will invest an additional $8.4 million as new capital. Duggan – who currently owns approximately 46% of the company’s outstanding common stock – will become the beneficial owner of approximately 51% of the company’s outstanding common stock after giving effect to the private placement. And accordingly – after the closing of the private placement – the company will be considered a “controlled” company under applicable Nasdaq Stock Market rules.

No warrants will be provided, or other discounts given, to Duggan in the private placement. And the private placement is being facilitated directly by the company. 

As such, no investment banking or placement fees are being incurred by the company. And the private placement is expected to close on or about July 7, 2021, subject to the satisfaction of customary preclosing conditions.

KEY QUOTE:

“This capital strengthens our balance sheet and enables greater flexibility to drive our top business priorities, the CellFX System Controlled Launch Program and the ongoing product development and initiatives to expand the clinical applications for NPS technology. We appreciate the continued support and leadership from the Chairman of our Board of Directors. The entire team at Pulse Biosciences is excited and committed to deliver the clinically differentiated benefits of Nano-Pulse Stimulation technology to as many patients as possible, starting in aesthetic dermatology.”

— Darrin Uecker, President and CEO of Pulse Biosciences

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.