Zynex pursues sale of $50 million three-year convertible notes absent secondary offering

By Abigail W. Adams

Portland, Me., May 4 – Zynex Inc. announced its plans to pursue the sale of a $50 million offering of three-year convertible notes despite the withdrawal of a secondary offering of 2 million shares, according to a company news release.

RBC Capital Markets LLC is bookrunner for the Rule 144A offering, which carries a greenshoe of $7.5 million.

Zynex CEO Thomas Sandgaard had previously announced his attention to concurrently sell 2 million shares in a non-contingent secondary offering, from which the company would receive no proceeds.

However, the secondary offering was withdrawn due to market conditions.

Zynex’s stock fell 22% in after-market trading on Wednesday following the announcement of the concurrent offerings.

Zynex plans to use $9.3 million of net proceeds from the convertible notes offering to repay borrowings under the company’s $16 million term loan with remaining proceeds to be used for general corporate purposes.

Zynex is an Englewood, Colo.-based medical device company.

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