Dallas, Texas 02/04/2014 (FINANCIALSTRENDS) – The $18.37 million market capped medical equipment and appliances maker Kips Bay Medical, Inc. (NASDAQ:KIPS), which is concentrating on developing a “external saphenous vein support” technology designed to develop a product called “eSVS(R) Mesh” which can be used in the “coronary artery bypass procedure” announced last week that it is closing the public offering, which was previously announced on 23rd January.
Kips Bay Medical, Inc. (NASDAQ:KIPS) had earlier announced that it was launching a public offer of 5.25 million shares of common stock and had indicated that it hopes to raise close to $4.25 million as proceeds from the exercise. In the event of over allotment, an additional 785,000 shares of common stock would be offered as part of the option to the underwriters. Trading firm Aegis Capital Corp has been retained as the sole book running managers for the offering.
The proceeds will be used by Kips Bay Medical, Inc. (NASDAQ:KIPS) as working capital and will also help advance its efforts at seeking approval for eSVS Mesh from FDA. Over the trailing 12 months, the company had generated revenue of $0.115 million. In the most recent quarter, it reported a big 85 percent dip in its quarter on quarter revenue which has resulted in the cash flows of the firm getting impacted. Free cash flow for the quarter had been reported at a negative $1.28 million. Its net loss over the past 12 months has accumulated to $6 million.
On the back of the announcement on 29th January, the stock has been shedding its market valuation. It has lost 5.42 percent of its market value during trading last week in addition to the 5.42 loss experienced during trading on 3rd February. Over the past 12 months, the medical equipment maker has lost close to 26 percent of its market valuation.