PLEASANTON, Calif., Sept. 21, 2023 (GLOBE NEWSWIRE) -- ProSomnus, Inc. (NASDAQ: OSA) (the “Company”), a leading CPAP alternative for the treatment of Obstructive Sleep Apnea (“OSA”), today announced the completion of a $10 million convertible preferred equity offering led by existing investors Spring Mountain Capital and Cetus Capital, LLC. ProSomnus’s Executive Chair, Chief Executive Officer, and Chief Financial Officer are also participating in the financing. A description of the terms of the offering can be found in the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on September 21, 2023.
The new capital will be leveraged to optimize the Company’s core business operations and support its strategic growth initiatives, as the Company works to achieve cash flow breakeven.
“The completion of this financing fortifies our balance sheet as we continue our mission to make precision oral appliance therapy the preferred first-line treatment for Obstructive Sleep Apnea,” said Len Liptak, Co-Founder and Chief Executive Officer. “As we discussed on our second quarter call, the ProSomnus team is executing at a high level, having reported 48% revenue growth in the first half of 2023 and additional scientific data demonstrating the effectiveness of ProSomnus precision devices. We will leverage this new capital to fine-tune our operating model, as we work to reach cash flow breakeven while still delivering strong top line growth. This financing is a key step forward and I am more confident than ever in our ability to demonstrate the compelling efficacy and adherence of our devices compared to alternative therapies including CPAP and hypoglossal nerve stimulation.”
This press release is not an offer to sell or the solicitation of an offer to buy any securities of the Company, nor shall there by any offer, solicitation or sale of any securities of the Company in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state.
About ProSomnus
ProSomnus (NASDAQ: OSA) is a leading CPAP alternative for the treatment of Obstructive Sleep Apnea, a serious medical disease affecting over 1 billion people worldwide, that is associated with comorbidities including heart failure, stroke, hypertension, morbid obesity, and type 2 diabetes. ProSomnus intraoral medical devices are engineered to precisely track the treatment plan and anatomy for each patient. Non-invasive, patient preferred and easy to use, ProSomnus devices have demonstrated excellent efficacy, safety, adherence, and overall outcomes in a growing body of clinical investigations. ProSomnus precision intraoral devices are FDA-cleared, patented, and covered by commercial medical insurance, Medicare, TRICARE and many Government sponsored healthcare plans around the world, representing over 200 million covered lives. To learn more, visit www.ProSomnus.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these words or other similar terms or expressions that concern the proposed transaction and the Company’s expectations, strategy, plans or intentions regarding it. Forward-looking statements in this press release include, but are not limited to, statements regarding the Company’s ability to achieve cash flow breakeven and deliver top-line growth, the expected use of proceeds from the financing timing and the Company ability to optimize its business and achieve strategic growth initiatives.
All forward-looking statements included in this press release are made as of the date of this press release, based on information currently available to the Company, deal with future events, are subject to various risks and uncertainties. Such risks and uncertainties include, but are not limited to: (i) the Company’s limited operating history and history of losses; (ii) the Company’s ability to maintain and grow its profit margin from sales of ProSomnus oral devices; (iii) the Company’s ability to expand internationally; (iv) the roll-out of the Company’s business and the timing of expected business milestones; (v) the Company’s ability to formulate, implement and modify as necessary effective sales, marketing, and strategic initiatives to drive revenue growth; (vi) expectations concerning the effectiveness of OSA treatment using the Company’s oral devices and the potential for patient relapse after completion of treatment; (vii) the understanding and adoption by dentists and other healthcare professionals of ProSomnus oral devices for mild-to-moderate OSA; (viii) risk related to compliance debt covenants or successfully renegotiating such covenants; (ix) the viability of the Company’s intellectual property and intellectual property created in the future; (x) government regulations and the Company’s ability to obtain applicable regulatory approvals and comply with government regulations, including under healthcare laws and the rules and regulations of the U.S. Food and Drug Administration; (xi) the risk of downturns in the market and the Company’s industry; and (xii) the outcome of any legal proceedings that may be instituted against the Company. The risks and uncertainties that may cause actual results to differ materially from the Company’s current expectations are more fully described in the Company’s Annual Report on Form 10-K filed with the SEC on April 14, 2023, any subsequently filed Quarterly Reports on Form 10-Q, and its other reports, each as filed with the SEC. Except as required by law, the Company assumes no obligation to update any such forward-looking statement after the date of this press release or to conform these forward-looking statements to actual results.
Investor Contact
Mike Cavanaugh
ICR Westwicke
Phone: +1.617.877.9641
Email: Mike.Cavanaugh@westwicke.com
Media Contact
Sean Leous
ICR Westwicke
Phone: +1.646.677.1839
Email: Sean.Leous@westwicke.com
