Eargo Announces Closing of Rights Offering and Conversion of Patient Square Notes Into Shares of Eargo Common Stock
Summary
SAN JOSE, Calif., Nov. 29, 2022 (GLOBE NEWSWIRE) -- Eargo, Inc. (Eargo or the Company) (NASDAQ: EAR), a medical device company on a mission to improve the quality of life for people with hearing loss, announced today the closing and final results of its rights offering, which expired at 5:00 p.m. New York City time, on November 17, 2022.Pursuant to the terms of the rights offering, 57,745,050 shares of the Companys common stock were purchased pursuant to the exercise of basic subscription rights and 828,970 shares of common stock were purchased under the over-subscription privilege, in each case at the subscription price of $0.50, for total gross proceeds from subscriptions in the rights offering of approximately $29.3 million.In addition, in accordance with the Note Purchase Agreement dated June 24, 2022 (the Note Purchase Agreement), by and among the Company and its subsidiaries, noteholders affiliated with Patient Square Capital (the Noteholders) and Drivetrain Agency Services, LLC, as administrative agent and collateral agent, an aggregate of approximately $105.5 million of senior secured convertible notes (the Notes) held by the Noteholders converted into 316,425,980 shares of the Companys common stock. The Company expects to use the net proceeds for general corporate purposes.Investors who have participated in the rights offering should expect to see the shares of common stock issued to them in uncertificated book-entry form.The rights offering was made only by means of the prospectus dated October 27, 2022 (the Prospectus), copies of which were distributed to eligible stockholders as of the record date for the rights offering.Eargo is a medical device company on a mission to improve hearing health. Our innovative products and go-to-market approach address the major challenges of traditional hearing aid adoption, including social stigma, accessibility and cost. Eargo hearing aids are offered to consumers at approximately half the cost of competing hearing aids purchased through traditional channels in the United States.This communication may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Except as required by law, the Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.