When you add up the stock sale,plus the 15% overallocation, plus existing cash, you come up $95 million. That's alot of money to simply rollout Pinpoint and Luna. While they indicate that no active discussions are occuring related acquistions, the sheer size of the new cash positions has to make you wonder if there is a target in their mind. at the same time, this CEO seems like an excellent businessman, one who wouldn't bite off more then he can chew when he is already in the middle of a significant rollout. Sometimes these investments can sure get increbily interesting. lol. Wish we had a larger collective mind on this message board. Andersoncopper, Fish, thoughts?
Yeah, it's only $54.8M and when added to the existing $37.2M, that's a measly $92.0M. Don't forget their $0.2M debt, so make that $91.8M on hand. They could have almost made the $95M mark, but the financial institution skimmed off their $3M (5.2%) cut. I don't know how they will keep the doors open.
Sentiment: Strong Buy
I've said before and I'll repeat it now. Arun leaves a lot be desired in the charisma department or evenin just sounding reasonable self assured, but his decisions and track record have been very very good indeed. Nobody else has gotten as much out of ISRG by way of one example. We can quibble over whether they needed the money or not but he sure knows how to do it. Strike while the iron is hot and raise money from a point of strength after the recent Pillar results. I agree that's a lot of money. My hunch is that whether through acquisition or licensing most of what they spend will be towards locking up IP for new molecules and/or eliminating competitors. And of course funding the expansion of their sales force. As long as he does as good a job with his salesforce as he has with his deals and product roll out, we should be continue to be in good shape.
2013 RBC Capital Markets Healthcare Conference: Novadaq is scheduled to present on
February 26th at 1:35 pm Eastern Time at the New York Palace Hotel in New York.
Dave Martin filled in for Arun at Novadaq's presentation. In answer to a question about possible competitors, he said the short answer was "no", but he did mention a Japanese company that was in the mix. Can anyone reference this company?
the timing of this offering came as a surprise but after the first shock, may be it is good.
with the road show at the end of the month, the first thing to be discussed is nvdq has plenty of cash so no worries about future needs through an offering is definitely of the table thus reducing concerns of the investment bankers.
Once those fears are gone, now he can talk real business about the technology and how they plan on using the $95 mil to build a huge enterprise.
I'm impressed that it looks like a single buyer took the whole deal since they only used one broker.
Endo, yes. I think you are correct, that we will see an acquisition. Although he is conservative and taking more than he needs for the rollouts, this is way more, and I expect an acquisition will be announced sooner, rather than later.
Though I cannot guess about acquisitions or other uses of the money, the size of this offering is incredibly large for a company of this size and is a tribute to the demand for the stock. JMHO