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SNWV Raises Non-Dilutive Financing

December 04, 2012 | Comments : 0 Recommended this article: (0)

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SNWV Raises Non-Dilutive Financing

By Brian Marckx, CFA

Yesterday (12/3/2012) SANUWAVE ( ( SNWV ) ) announced that they entered into a financing agreement with one of the company's largest shareholders whereby he will purchase $1MM worth of common stock at $0.25/share over a period of about 18 months.

Terms of the subscription agreement include the sale of $50k (200k) worth of shares by 1/31/2013, $50k by 2/15/2013 and the remaining $900k (3.6MM shares) by 5/27/2014. If at any time after 2/15/2013 SNWV's cash balance falls below $100k the company has the option of requiring the subscriber to purchase $100k (400k) worth of shares of the balance of the total financing amount.

As we noted in our most recent investor note, SNWV has managed their cash well and kept burn to a minimum. As of the end of Q3 (9/30/2012) SNWV had $361k in cash and equivalents. Per the Q3 earnings release, SNWV expects to have a larger capital raise in place by the end of Q1 2013 - which we expect remains the current game plan. This should provide even greater breathing room and help accelerate the supplemental dermaPACE clinical trial.


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