The analyst who wrote this article owns Semler Scientific (SMLR) stock.
Medical device maker Semler Scientific (SMLR) said it plans to sell $75 million in medical devices, sending its shares plummeting 15% after the U.S. stock market closed on Thursday. convertible senior notes and will use a portion of the funds to be added to their Bitcoin (Bitcoin) holdings.
The stock fell to $51 and was down 8% in recent premarket trading. The Santa Clara, Calif.-based company Increase issuance size to $85 million, with an option for an additional $15 million. The note matures in 2030 and carries an annual interest rate of 4.25%.
Semler set an initial conversion price of $76.44, a 2% premium to the stock’s closing price on Thursday. The notes are redeemable after August 2028, subject to the stock price reaching 130% of the conversion price.
Of that amount, $6.6 million will be used to fund capped subscription transactions to limit dilution for existing investors, while the remainder will be used for Bitcoin acquisitions and general corporate purposes.
Fourth quarter revenue The company said it grew 3.3% to $12.5 million, with operating income rising 8.8% to $3.7 million. Unrealized gains from changes in the fair value of Bitcoin held were approximately $29 million.
As of January 17, Semler Scientific held 2,321 BTC with a total purchase price of $191.9 million and an average price of $82,689.
Update (January 24, 13:06 UTC): Add additional details to increase sales, interest rates starting in the second paragraph.
