NeuroPace (NPCE, Financials) priced its underwritten public offering of 6.5 million shares at $10 per share, aiming to raise approximately $65 million before deducting underwriting discounts, commissions, and expenses.

• Warning! GuruFocus has detected 5 Warning Signs with NPCE.

Subject to normal closing conditions, the offering is scheduled to conclude on Feb. 18. Additionally given a 30-day option to buy up to an extra 975,000 shares at the same price are underwriters.

About $49.5 million of the net proceeds would be used by NeuroPace to buy 5,270,845 shares from KCK Ltd., a key stakeholder, at $9.40 each. General corporate uses for the remaining fundsincluding any underwriter option proceedsmay include debt repayment, working capital, research and development, clinical trials, sales and administrative expenditures.

Lead manager Lake Street Capital Markets is joined in book-running management for the offering by J.P. Morgan, Cantor, Wells Fargo Securities and Leerink Partners. Under a shelf registration statement the Securities and Exchange Commission deemed effective in November 2022, the shares are being offered.

Following the statement, NeuroPace's pre-market trading saw a steep decline; its shares dropped 10.59% to $10.81 as of Friday's 7:41 a.m. ET.

NeuroPace develops brain-responsive neuromodulation technology for drug-resistant epilepsy out of Mountain View, California. Designed to instantly identify and react to seizure activity, the RNS System is the first and only FDA-approved brain-responsive neurostimulation platform.

NeuroPace advised that the offer is still subject to market circumstances and standard closing criteria. The corporation also mentioned hazards connected to legislative obstacles and swings in the stock market. For a thorough risk analysis, investors are urged to go over NeuroPace's SEC filingsincluding its most recent quarterly report.