K2M Sells More Stock
Friday, July 17, 2015
K2M Inc., a Leesburg-based global medical device maker, has sold more stock to the public in a secondary offering that resulted in net proceeds of approximately $16.3 million.
The sale included 750,000 shares offered by the Company and 3,750,000 shares offered by the selling stockholders named in the registration statement (the "selling stockholders"), at a price to the public of $22.60 per share. In addition, the underwriter has a 30-day option to purchase up to 675,000 additional shares of common stock from the Company and the selling stockholders on a pro rata basis.
The proceeds of the primary portion of the offering will be used by the Company for working capital and general corporate purposes, which is expected to include the expansion of the Company's global distribution network and the purchase of inventory to support the sales efforts. Use of proceeds may also include the acquisition of or investment in complementary products, technologies or businesses. The Company will not receive any proceeds from shares of common stock sold by the selling stockholders, including from any exercise by the underwriter of its option to purchase additional shares from the selling stockholders.
K2M last sold stock to the public in February 2015.
Its initial public offering in May 2014 raised $120 million, one of the largest IPOs in the Washington region last year.
K2M also reported preliminary second quarter results, with revenue of as much as $56.4 million, up 19 percent from a year ago. It says its second quarter net loss was in the range of $6.5 million to $8.5 million, compared to a net loss of $17.7 million in the second quarter of 2014.