08/12/2022 | Press release | Distributed by Public on 08/12/2022 14:59
| | |
Per Share
|
| |
Per
Pre-Funded Warrant |
| |
Total
|
| |||||||||
Public offering price
|
| | | $ | 55.00 | | | | | $ | 54.9997500 | | | | | $ | 125,124,618.75 | | |
Underwriting discount(1)
|
| | | $ | 1.65 | | | | | $ | 1.6499925 | | | | | $ | 3,753,738.56 | | |
Proceeds, before expenses, to OrthoPediatrics Corp.
|
| | | $ | 53.35 | | | | | $ | 53.3497575 | | | | | $ | 121,370,880.19 | | |
| Piper Sandler | | |
Stifel
|
|
| | |
Page
|
| |||
PROSPECTUS SUPPLEMENT
|
| | | | | | |
ABOUT THIS PROSPECTUS SUPPLEMENT
|
| | | | S-ii | | |
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
|
| | | | S-iii | | |
PROSPECTUS SUPPLEMENT SUMMARY
|
| | | | S-1 | | |
RISK FACTORS
|
| | | | S-14 | | |
USE OF PROCEEDS
|
| | | | S-21 | | |
DILUTION
|
| | | | S-22 | | |
DIVIDEND POLICY
|
| | | | S-23 | | |
CAPITALIZATION
|
| | | | S-24 | | |
DESCRIPTION OF PRE-FUNDED WARRANTS
|
| | | | S-25 | | |
MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES TO NON-U.S. HOLDERS OF OUR COMMON STOCK AND PREFUNDED WARRANTS
|
| | | | S-27 | | |
UNDERWRITING
|
| | | | S-32 | | |
LEGAL MATTERS
|
| | | | S-39 | | |
EXPERTS
|
| | | | S-39 | | |
WHERE YOU CAN FIND MORE INFORMATION
|
| | | | S-39 | | |
INCORPORATION BY REFERENCE
|
| | | | S-39 | | |
|
PROSPECTUS
|
| | | | | | |
|
ABOUT THIS PROSPECTUS
|
| | | | 1 | | |
|
WHERE YOU CAN FIND MORE INFORMATION
|
| | | | 2 | | |
|
INCORPORATION BY REFERENCE
|
| | | | 3 | | |
|
THE COMPANY
|
| | | | 4 | | |
|
OFFERINGS UNDER THIS PROSPECTUS
|
| | | | 6 | | |
|
RISK FACTORS
|
| | | | 7 | | |
|
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
|
| | | | 8 | | |
|
USE OF PROCEEDS
|
| | | | 9 | | |
|
DESCRIPTION OF CAPITAL STOCK
|
| | | | 9 | | |
|
DESCRIPTION OF DEBT SECURITIES
|
| | | | 14 | | |
|
DESCRIPTION OF WARRANTS
|
| | | | 20 | | |
|
LEGAL OWNERSHIP OF SECURITIES
|
| | | | 21 | | |
|
PLAN OF DISTRIBUTION
|
| | | | 24 | | |
|
LEGAL MATTERS
|
| | | | 26 | | |
|
EXPERTS
|
| | | | 26 | | |
| | | | | | | | | | | | | | | | | | | | |
Six Months Ended June 30,
|
| |||||||||
| | |
Year Ended December 31,
|
| |
(Unaudited)
|
| ||||||||||||||||||||||||
(in thousands, except share and per share information) |
| |
2019
|
| |
2020
|
| |
2021
|
| |
2021
|
| |
2022
|
| |||||||||||||||
Statement of operations data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net revenue
|
| | | $ | 72,552 | | | | | $ | 71,078 | | | | | $ | 98,049 | | | | | $ | 48,157 | | | | | $ | 56,345 | | |
Cost of revenue
|
| | | | 17,933 | | | | | | 16,047 | | | | | | 24,646 | | | | | | 11,389 | | | | | | 12,798 | | |
Gross profit
|
| | | | 54,619 | | | | | | 55,031 | | | | | | 73,403 | | | | | | 36,768 | | | | | | 43,547 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Sales and marketing
|
| | | | 31,284 | | | | | | 31,854 | | | | | | 39,673 | | | | | | 19,825 | | | | | | 22,189 | | |
General and administrative
|
| | | | 26,664 | | | | | | 38,317 | | | | | | 46,061 | | | | | | 23,129 | | | | | | 27,713 | | |
Legal settlement expenses
|
| | | | - | | | | | | 6,342 | | | | | | 150 | | | | | | - | | | | | | - | | |
Research and development
|
| | | | 5,748 | | | | | | 5,273 | | | | | | 5,543 | | | | | | 2,633 | | | | | | 3,774 | | |
Total operating expenses
|
| | | | 63,696 | | | | | | 81,786 | | | | | | 91,427 | | | | | | 45,587 | | | | | | 53,676 | | |
Operating loss
|
| | | | (9,077) | | | | | | (26,755) | | | | | | (18,024) | | | | | | (8,819) | | | | | | (10,129) | | |
Other expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense
|
| | | | 3,538 | | | | | | 3,412 | | | | | | 2,247 | | | | | | 1,309 | | | | | | 1,777 | | |
Fair value adjustment of contingent consideration
|
| | | | - | | | | | | 3,520 | | | | | | (1,800) | | | | | | 5,140 | | | | | | (2,440) | | |
Other expenses (income)
|
| | | | 70 | | | | | | (20) | | | | | | (1,083) | | | | | | (535) | | | | | | 723 | | |
Total other expenses
|
| | | | 3,608 | | | | | | 6,912 | | | | | | (636) | | | | | | 5,914 | | | | | | 60 | | |
Loss before income taxes
|
| | | | (12,685) | | | | | | (33,667) | | | | | | (17,388) | | | | | | (14,733) | | | | | | (10,189) | | |
Provision for income taxes
(benefit) |
| | | | - | | | | | | (723) | | | | | | (1,128) | | | | | | (598) | | | | | | (756) | | |
Net loss from continuing operations
|
| | | | (12,685) | | | | | | (32,944) | | | | | | (16,260) | | | | | | (14,135) | | | | | | (9,433) | | |
Net loss from discontinued operations
|
| | | | (1,046) | | | | | | - | | | | | | - | | | | | | - | | | | | | - | | |
Net loss
|
| | | $ | (13,731) | | | | | $ | (32,944) | | | | | $ | (16,260) | | | | | $ | (14,135) | | | | | $ | (9,433) | | |
Weighted average common shares - basic and diluted
|
| | | | 14,624,194 | | | | | | 18,056,828 | | | | | | 19,268,255 | | | | | | 19,263,506 | | | | | | 19,693,216 | | |
Net loss from continuing operations per share - basic and diluted(1)
|
| | | $ | (0.87) | | | | | $ | (1.82) | | | | | $ | (0.84) | | | | | $ | (0.73) | | | | | $ | (0.48) | | |
| | | | | | | | | | | | | | | | | | | | |
Six Months Ended June 30,
|
| |||||||||
| | |
Year Ended December 31,
|
| |
(Unaudited)
|
| ||||||||||||||||||||||||
(in thousands, except share and per share information) |
| |
2019
|
| |
2020
|
| |
2021
|
| |
2021
|
| |
2022
|
| |||||||||||||||
Net loss from discontinued operations per share - basic and diluted
|
| | | | (0.07) | | | | | | - | | | | | | - | | | | | | - | | | | | | - | | |
Net loss per share - basic and diluted
|
| | | $ | (0.94) | | | | | $ | (1.82) | | | | | $ | (0.84) | | | | | $ | (0.73) | | | | | $ | (0.48) | | |
|
| | |
As of June 30, 2022
|
| |||||||||
(in thousands)
|
| |
Actual
|
| |
As Adjusted(1)
|
| ||||||
Balance sheet data: | | | | | | | | | | | | | |
Cash, restricted cash and short-term investments(2)
|
| | | $ | 52,518 | | | | | $ | 142,529 | | |
Working capital(3)
|
| | | | 116,935 | | | | | | 206,946 | | |
Total debt
|
| | | | 31,977 | | | | | | 977 | | |
Total stockholders' equity
|
| | | | 227,216 | | | | | | 348,227 | | |
Total capitalization
|
| | | | 259,193 | | | | | | 349,204 | | |
| | |
Three Months Ended
June 30, |
| |
Six Months Ended
June 30, |
| ||||||||||||||||||
| | |
(Unaudited)
(In Thousands) |
| |||||||||||||||||||||
| | |
2022
|
| |
2021
|
| |
2022
|
| |
2021
|
| ||||||||||||
Net loss
|
| | | $ | (333) | | | | | $ | (3,756) | | | | | $ | (9,433) | | | | | $ | (14,135) | | |
Interest expense, net
|
| | | | 1,212 | | | | | | 581 | | | | | | 1,777 | | | | | | 1,309 | | |
Other expenses (income)
|
| | | | 827 | | | | | | (375) | | | | | | 723 | | | | | | (535) | | |
Provision for income taxes (benefit)
|
| | | | (439) | | | | | | (286) | | | | | | (756) | | | | | | (598) | | |
Depreciation and amortization
|
| | | | 3,331 | | | | | | 2,608 | | | | | | 6,292 | | | | | | 5,147 | | |
Stock-based compensation
|
| | | | 1,770 | | | | | | 1,415 | | | | | | 3,296 | | | | | | 2,731 | | |
Fair value adjustment of contingent consideration
|
| | | | (5,010) | | | | | | 990 | | | | | | (2,440) | | | | | | 5,140 | | |
Acquisition-related costs
|
| | | | 505 | | | | | | - | | | | | | 709 | | | | | | - | | |
Non-recurring professional fees
|
| | | | - | | | | | | 58 | | | | | | - | | | | | | 658 | | |
Accrued legal settlement costs
|
| | | | - | | | | | | - | | | | | | - | | | | | | 150 | | |
Minimum purchase commitment cost
|
| | | | 240 | | | | | | - | | | | | | 341 | | | | | | - | | |
Adjusted EBITDA
|
| | | $ | 2,103 | | | | | $ | 1,235 | | | | | $ | 509 | | | | | $ | (133) | | |
|
Public offering price per share
|
| | | | | | | | | $ | 55.00 | | |
|
Historical net tangible book value per share as of June 30, 2022
|
| | | $ | 4.00 | | | | | | | | |
|
Increase in net tangible book value per share attributable to investors purchasing shares in this offering
|
| | | | 4.97 | | | | | | | | |
|
As adjusted net tangible book value per share as of June 30, 2022
|
| | | | | | | | | | 8.97 | | |
|
Dilution per share to new investors in this offering
|
| | | | | | | | | $ | 46.03 | | |
| | |
As of June 30, 2022
|
| |||||||||
(in thousands, except share and per share information)
|
| |
Actual
|
| |
As Adjusted
|
| ||||||
Cash, restricted cash and short-term investments
|
| | | $ | 52,518 | | | | | $ | 142,529 | | |
Total debt
|
| | | $ | 31,977 | | | | | $ | 977 | | |
Stockholders' equity: | | | | | | | | | | | | | |
Common stock, $0.00025 par value; 50,000,000 shares authorized; 20,238,870 shares issued, actual; and 20,988,870 shares issued and outstanding, as adjusted for this offering
|
| | | | 5 | | | | | | 5 | | |
Additional paid-in capital
|
| | | | 418,354 | | | | | | 539,365 | | |
Accumulated deficit
|
| | | | (187,459) | | | | | | (187,459) | | |
Accumulated other comprehensive income (loss)
|
| | | | (3,684) | | | | | | (3,684) | | |
Total stockholders' equity
|
| | | | 227,216 | | | | | | 348,227 | | |
Total capitalization
|
| | | $ | 259,193 | | | | | $ | 349,204 | | |
Underwriters
|
| |
Number of
Shares |
| |
Number of
Pre-Funded Warrants |
| ||||||
Piper Sandler & Co.
|
| | | | 375,000 | | | | | | 762,500 | | |
Stifel, Nicolaus & Company, Incorporated
|
| | | | 375,000 | | | | | | 762,500 | | |
Total
|
| | | | 750,000 | | | | | | 1,525,000 | | |
| | |
No Exercise
|
| |
Full Exercise
|
| ||||||
Common stock
|
| | | $ | 1,237,500.00 | | | | | $ | 1,800,562.50 | | |
Pre-funded warrants
|
| | | $ | 2,516,238.56 | | | | | $ | 2,516,238.56 | | |
Total
|
| | | $ | 3,753,738.56 | | | | | $ | 4,316,801.06 | | |
|
ORTHOPEDIATRICS
CORP. |
| | |
| | |
Page
|
| |||
ABOUT THIS PROSPECTUS
|
| | | | 1 | | |
WHERE YOU CAN FIND MORE INFORMATION
|
| | | | 2 | | |
INCORPORATION BY REFERENCE
|
| | | | 3 | | |
THE COMPANY
|
| | | | 4 | | |
OFFERINGS UNDER THIS PROSPECTUS
|
| | | | 6 | | |
RISK FACTORS
|
| | | | 7 | | |
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
|
| | | | 8 | | |
USE OF PROCEEDS
|
| | | | 9 | | |
DESCRIPTION OF CAPITAL STOCK
|
| | | | 9 | | |
DESCRIPTION OF DEBT SECURITIES
|
| | | | 14 | | |
DESCRIPTION OF WARRANTS
|
| | | | 20 | | |
LEGAL OWNERSHIP OF SECURITIES
|
| | | | 21 | | |
PLAN OF DISTRIBUTION
|
| | | | 24 | | |
LEGAL MATTERS
|
| | | | 26 | | |
EXPERTS
|
| | | | 26 | | |