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Envoy Medical® Inc. (NASDAQ: COCH), a company with headquarters in White Bear Lake, Minn, that develops fully implanted hearing solutions, announced that it has priced an upsized public offering that could generate $30 million upfront and up to an additional $48 million if certain milestone-linked warrants are later exercised in full for cash.

The transaction consists of 75,000,000 shares of Class A common stock (or pre-funded warrants in lieu of shares) sold together with two warrant series. Investors will also receive Series A-1 common warrants to purchase up to 45,000,000 shares of Class A common stock (or pre-funded warrants in lieu thereof) and Series A-2 common warrants to purchase up to 75,000,000 shares of Class A common stock (or pre-funded warrants in lieu thereof). The combined public offering price is $0.40 per share (or per pre-funded warrant) along with the accompanying warrants.

Envoy Medical's emphasis has been on fully implanted hearing solutions. The company’s FDA-approved Esteem® fully implanted active middle ear implant is indicated for adults with moderate to severe sensorineural hearing loss and is designed to leverage the ear’s anatomy (including using the eardrum to capture sound) while leaving the ear canal open. Esteem has been commercially available since 2010.

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Envoy is also developing and has recently received FDA review to begin a pivotal clinical study for Acclaim®, a first-of-it's kind, fully implanted cochlear implant. The Acclaim Cochlear Implant remains under investigation and has not yet received FDA approval.

The company says it plans to use the net proceeds of the public offering for working capital and to support operations during its FDA pivotal clinical study for the Acclaim fully implanted cochlear implant.

H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering. For full details and disclaimers on the public offering, please see Envoy Medical's press release.

  • HearingTracker Staff