As
filed with the Securities and Exchange Commission on August 23, 2024.
Registration
No. 333-___
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
DC 20549
FORM
S-3
REGISTRATION
STATEMENT
UNDER
THE
SECURITIES ACT OF 1933
STEREOTAXIS,
INC.
(Exact
name of registrant as specified in its charter)
Delaware |
|
94-3120386 |
(State
or other jurisdiction of
incorporation
or organization) |
|
(I.R.S.
Employer
Identification
No.) |
710
North Tucker Boulevard, Suite 110
St. Louis, Missouri 63101
(314) 678-6100
(Address,
including zip code, and telephone number, including area code, of registrant’s principal executive offices)
David
Fischel
Chief
Executive Officer
Stereotaxis,
Inc.
710
North Tucker Boulevard, Suite 110
St.
Louis, Missouri 63101
(314)
678-6100
(Name,
address, including zip code, and telephone number, including area code, of agent for service) |
|
Copies
of all correspondence to:
Robert
J. Endicott, Esq.
Bryan
Cave Leighton Paisner LLP
One
Metropolitan Square
211
North Broadway, Suite 3600
St.
Louis, Missouri 63102-2750
(314)
259-2000
(314)
259- 2020 (fax) |
Approximate
date of commencement of proposed sale to public: From time to time after this registration statement becomes effective.
If
the only securities being registered on this Form are being offered pursuant to dividend or interest reinvestment plans, please check
the following box: ☐
If
any of the securities being registered on this form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the
Securities Act of 1933, check the following box. ☒
If
this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the
following box and list the Securities Act registration statement number of the earlier effective registration statement for the same
offering. ☐
If
this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐
If
this Form is a registration statement pursuant to General Instruction I.D. or a post-effective amendment thereto that shall become effective
upon filing with the Commission pursuant to Rule 462(e) under the Securities Act, check the following box. ☐
If
this Form is a post-effective amendment to a registration statement filed pursuant to General Instruction I.D. filed to register additional
securities or additional classes of securities pursuant to Rule 413(b) under the Securities Act, check the following box. ☐
Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting
company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,”
“smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large
accelerated filer ☐ |
|
Accelerated
filer ☐ |
|
Non-accelerated
filer ☒ |
|
Smaller
reporting company ☒ |
|
|
|
|
|
|
Emerging
growth company ☐ |
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided to Section 7(a)(2)(B) of the Securities Act. ☐
The
Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the
Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective
in accordance with Section 8(a) of the Securities Act of 1933 or until the Registration Statement shall become effective on such date
as the SEC, acting pursuant to said Section 8(a), may determine.
THE
INFORMATION IN THIS PROSPECTUS IS NOT COMPLETE AND MAY BE CHANGED. THE SECURITIES MAY NOT BE SOLD UNTIL THE REGISTRATION STATEMENT FILED
WITH THE SECURITIES AND EXCHANGE COMMISSION IS EFFECTIVE. THIS PROSPECTUS IS NOT AN OFFER TO SELL THESE SECURITIES AND IT IS NOT SOLICITING
AN OFFER TO BUY THESE SECURITIES IN ANY STATE WHERE THE OFFER OR SALE IS NOT PERMITTED.
Subject
to Completion, dated August 23, 2024
PROSPECTUS
![](https://www.sec.gov/Archives/edgar/data/1289340/000149315224033759/forms-3_001.jpg)
Common
Stock, $0.001 par value
6,100,000 Shares
This
prospectus relates to the resale, from time to time, of up to 6,100,000 shares (the “Shares”) of our common stock which are
held by, or that may be issued to, APT Holding Company, Inc., the Selling Stockholder named herein.
The
Selling Stockholder acquired or will acquire the Shares in connection with our acquisition of Access Point Technologies EP, Inc. (the
“Company”), a privately held Minnesota corporation, pursuant to a Share Purchase (“Share Purchase Agreement”),
dated May 11, 2024. Registration of the Shares does not necessarily mean that any of such Shares will be offered or sold by the Selling
Stockholder. We are not selling any shares of our common stock under this prospectus and will not receive any of the proceeds from any
sale of such Shares by or on behalf of the Selling Stockholder. The issuance of the Earnout Shares to the Selling Stockholder, if any,
is contingent upon the achievement of the product revenue and regulatory approval milestones through September 30, 2029.
The
Shares being registered hereunder are comprised of (i) 1,486,620 shares of our common stock (the “Closing Shares”) issued
to the Selling Stockholder on July 31, 2024 pursuant to the Share Purchase Agreement and (ii) up to 4,613,380 additional shares of our
common stock (the “Earnout Shares”) which may be issued to the Selling Stockholder as earnout consideration under the Share
Purchase Agreement. The number of Earnout Shares offered for sale by this prospectus is a good faith estimate of the number of shares
we reasonably expect to issue to the Selling Stockholder pursuant to the Share Purchase Agreement in respect of the achievement of the
revenue and regulatory approval milestones specified therein. The Earnout Shares have not been earned
and are not currently outstanding. The actual number of Earnout Shares issued to the Selling Stockholder could be materially greater
or less than 4,613,380 shares of common stock depending whether and to what extent the future revenue milestones are met and/or regulatory
approvals are obtained, as well as the actual average closing price of our common stock calculated pursuant to a formula near the time
such milestones are achieved.
The
Selling Stockholder, or its permitted pledgees, transferees, donees or other successors-in-interest, may sell the Shares of our common
stock described in this prospectus in a number of different ways and at varying prices. We provide more information about how the Selling
Stockholder may resell their respective shares of our common stock in the section titled “Plan of Distribution” beginning
on page 9. We will pay the expenses incurred in registering the shares, including legal and accounting fees. We will not be paying any
underwriting discounts or commissions in this offering.
Our
common stock is traded on the NYSE American under the symbol “STXS.” On August 22, 2024, the last reported sale price
for our common stock on the NYSE American was $2.25 per share.
Investing
in our securities involves a high degree of risk. Before buying any securities, you should read the discussion of material risks of investing
in our common stock under the heading “Risk Factors” beginning on page 3 of this prospectus.
Neither
the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed
upon the adequacy or accuracy of this prospectus. Any representation to the contrary is a criminal offense.
The
date of this prospectus is , 2024
TABLE
OF CONTENTS
ABOUT
THIS PROSPECTUS
This
prospectus is part of a registration statement that we filed with the Securities and Exchange Commission, or SEC. This prospectus does
not contain all of the information included in the registration statement. For a more complete understanding of the offering of the securities,
you should refer to the registration statement, including its exhibits. This prospectus, together with the documents incorporated by
reference into this prospectus, includes all material information relating to the offering of securities under this prospectus. You should
carefully read this prospectus, the information and documents incorporated herein by reference and the additional information under the
heading “Where You Can Find More Information” before making an investment decision.
We
and the Selling Stockholder have not authorized anyone to provide you with information different from that contained or incorporated
by reference in this prospectus. No dealer, salesperson or other person is authorized to give any information or to represent anything
not contained or incorporated by reference in this prospectus. We and the Selling Stockholder take no responsibility for and can provide
no assurances as to the reliability of, any other information that others may give you. This prospectus is an offer to sell only the
securities offered hereby, but only under circumstances and in jurisdictions where it is lawful to do so. You should assume that the
information in this prospectus or any prospectus supplement is accurate only as of the date on the front of the document and that any
information incorporated herein by reference is accurate only as of the date of the document incorporated by reference, regardless of
the time of delivery of this prospectus or any sale of a security.
We
further note that the representations, warranties and covenants made by us in any agreement that is filed as an exhibit to any document
that is incorporated by reference in the accompanying prospectus were made solely for the benefit of the parties to such agreement, including,
in some cases, for the purpose of allocating risk among the parties to such agreements, and should not be deemed to be a representation,
warranty or covenant to you. Moreover, such representations, warranties or covenants were accurate only as of the date when made. Accordingly,
such representations, warranties and covenants should not be relied on as accurately representing the current state of our affairs.
PROSPECTUS
SUMMARY
The
following is a summary of what we believe to be the most important aspects of our business and a general description of the securities
that may be offered for resale or other disposition by the Selling Stockholder. We urge you to read this entire prospectus, including
the more detailed consolidated financial statements, notes to the consolidated financial statements and other information incorporated
by reference from our other filings with the SEC. Investing in our securities involves risks. Therefore, carefully consider the risk
factors set forth in our most recent annual and quarterly filings with the SEC, as well as other information in this prospectus and the
documents incorporated by reference herein, before purchasing our securities. Each of the risk factors could adversely affect our business,
operating results and financial condition, as well as adversely affect the value of an investment in our securities.
The
Company
Stereotaxis
designs, manufactures and markets robotic systems, instruments and information systems for the interventional laboratory. Our proprietary
robotic technology, Robotic Magnetic Navigation, fundamentally transforms endovascular interventions using precise computer-controlled
magnetic fields to directly control the tip of flexible interventional catheters or devices. Direct control of the tip of an interventional
device, in contrast to all manual hand-held devices that are controlled from their handle, can improve the precision, stability, reach
and safety of these devices during procedures.
Our
primary clinical focus has been electrophysiology, specifically cardiac ablation procedures for the treatment of arrhythmias. Cardiac
ablation has become a well-accepted therapy for arrhythmias and a multi-billion-dollar medical device market with expectations for substantial
long-term growth. We have shared our aspiration and a product strategy to expand the clinical focus of our technology to several additional
endovascular indications including coronary, neuro, and peripheral interventions.
There
is substantial real-world evidence and clinical literature for Robotic Magnetic Navigation in electrophysiology. Hundreds of electrophysiologists
at over one hundred hospitals globally have treated over 100,000 arrhythmia patients with our robotic technology. Clinical use of our
technology has been documented in over 500 clinical publications. Robotic Magnetic Navigation is designed to enable physicians to complete
more complex interventional procedures with greater success and safety by providing image-guided delivery of catheters through the blood
vessels and chambers of the heart to treatment sites. This is achieved using externally applied computer-controlled magnetic fields that
govern the motion of the working tip of the catheter, resulting in improved navigation. The more flexible atraumatic design of catheters
driven using magnetic fields may reduce the risk of patient harm and other adverse events. Performing the procedure from a control cockpit
enables physicians to complete procedures in a safe location protected from x-ray exposure, with greater ergonomics, and improved efficiency.
We believe these benefits can be applicable in other endovascular indications where navigation through complex vasculature is often challenging
or unsuccessful and generates significant x-ray exposure, and we are investing in research and development in these areas.
Our
primary products include the Genesis RMN System, the Odyssey Solution, and other related devices. Through our strategic
relationships with fluoroscopy system manufacturers, providers of catheters and electrophysiology mapping systems, and other parties,
we offer our customers x-ray systems and other accessory devices.
The
Genesis RMN System is designed to enable physicians to complete more complex interventional procedures by providing image-guided
delivery of catheters through the blood vessels and chambers of the heart to treatment sites. This is achieved using externally applied
magnetic fields that govern the motion of the working tip of the catheter, resulting in improved navigation, efficient procedures, and
reduced x-ray exposure.
The
Odyssey Solution consolidates lab information onto one large integrated display, enabling physicians to view and control all the
key information in the operating room. This is designed to improve lab layout and procedure efficiency. The system also features a remote
viewing and recording capability called Odyssey Cinema, which is an innovative solution that delivers synchronized content for
optimized workflow, advanced care, and improved productivity. This tool includes an archiving capability that allows clinicians to store
and replay entire procedures or segments of procedures. This information can be accessed from locations throughout the hospital local
area network and over the global Odyssey Network providing physicians with a tool for clinical collaboration, remote consultation,
and training.
We
have arrangements with fluoroscopy system manufacturers to provide such systems in a bundled purchase offer for hospitals establishing
robotic interventional operating rooms. These are single-plane, full-power x-ray systems and include the c-arm and powered table. The
combination of RMN Systems with our partnered x-ray systems reduces the cost of acquisition, the ongoing cost of ownership, and the complexity
of installation of a robotic electrophysiology practice.
We
promote our full suite of products in a typical hospital implementation, subject to regulatory approvals or clearances. This implementation
requires a hospital to agree to an upfront capital payment and recurring payments. The upfront capital payment typically includes equipment
and installation charges. The recurring payments typically include disposable costs for each procedure, equipment service costs beyond
the warranty period, and ongoing software updates. In hospitals where our full suite of products has not been implemented, equipment
upgrade or expansion can be implemented upon purchasing of the necessary upgrade or expansion.
We
have received regulatory clearances and approvals necessary for us to market the Genesis RMN System in the U.S. and Europe, and
we are in the process of obtaining necessary registrations for extending our markets in other countries. The Niobe System, our
prior generation robotic magnetic navigation system, the Odyssey Solution, Cardiodrive, e-Contact, and various disposable
interventional devices have received regulatory clearances and approvals in the U.S., Europe, Canada, China, Japan and various other
countries. We have regulatory clearances and approvals that allow us to market the Vdrive and Vdrive Duo Systems with the
V-CAS device in the U.S., Canada and Europe. We are pursuing regulatory approvals for the Stereotaxis MAGiC catheter, a robotically-navigated
magnetic ablation catheter designed to perform minimally invasive cardiac ablation procedures, in various global geographies. Approval
processes can be lengthy and uncertain, submissions may require revised or additional non-clinical and clinical data, and regulatory
applications could be denied.
We
have strategic relationships with technology leaders and innovators in the global interventional market. Through these strategic relationships
we provide compatibility between our robotic magnetic navigation system, x-ray systems, and digital imaging and 3D catheter location
sensing technology, as well as disposable interventional devices. The maintenance of these strategic relationships, or the establishment
of equivalent alternatives, is critical to our commercialization efforts. There are no guarantees that any existing strategic relationships
will continue, and efforts are ongoing to ensure the availability of compatible systems and devices and/or equivalent alternatives. We
cannot provide assurance as to the timeline of the ongoing availability of such compatible systems or our ability to obtain equivalent
alternatives on competitive terms or at all.
We
were incorporated in Delaware in June 1990 as Stereotaxis, Inc. Our principal executive offices are located at 710 North Tucker Boulevard,
Suite 110, Saint Louis, Missouri 63101, and our telephone number is (314) 678-6100. Our website address is www.stereotaxis.com. Information
contained on our website is not incorporated by reference into and does not form any part of this prospectus. As used in this prospectus,
references to “Company”, “we”, “our”, “us” and “Stereotaxis” refer to Stereotaxis,
Inc. unless the context requires otherwise. Genesis RMN®, Niobe®, Navigant®, Odyssey®,
Odyssey Cinema™, Vdrive®, Vdrive Duo™, V-CAS™, V-Loop™,
V-Sono™, QuikCAS™, Cardiodrive®, and MAGiC™ are trademarks of Stereotaxis,
Inc. All other trademarks that appear in this report are the property of their respective owners.
RISK
FACTORS
Investing
in our securities involves significant risk. Prior to making a decision about investing in our securities, you should carefully consider
the following risk factors as well as all of the information appearing or incorporated by reference in this prospectus. You should also
consider the risks, uncertainties and assumptions discussed under the heading “Risk Factors” included in our Annual
Report on Form 10-K for the year ended December 31, 2023, as revised or supplemented by our subsequent Quarterly Reports on Form 10-Q
or our Current Reports on Form 8-K that we have filed with the SEC, all of which are incorporated herein by reference, and which may
be amended, supplemented or superseded from time to time by other reports we file with the SEC in the future. For a description of these
reports and documents, and information about where you can find them, see the sections entitled “Where you Can Find Additional
Information” and “Incorporation of Certain Documents by Reference” in this prospectus. The risks and uncertainties
we have described are not the only ones we face. Additional risks and uncertainties not presently known to us or that we currently deem
immaterial may also affect our operations. The occurrence of any of these risks might cause you to lose all or part of your investment
in the offered securities.
Risks
Related to our Recently Completed Acquisition of APT
We
may be unable to successfully integrate APT into our business and may fail to realize any or all of the anticipated benefits of the acquisition,
or those benefits may take longer to realize than expected.
Prior
to the completion of our acquisition of APT, both companies previously operated independently and manufactured different products. The
success of the acquisition will depend, in part, on our ability to (i) successfully integrate APT’s businesses into Stereotaxis,
(ii) successfully manufacture, commercialize, develop and sell APT’s catheters and related products, and (iii) realize the anticipated
benefits, including synergies, cost savings, innovation opportunities and operational efficiencies, from the acquisition, all in a manner
that does not materially disrupt existing customer, supplier and employee relations. If we are unable to achieve these objectives within
the anticipated time frame, or at all, the anticipated benefits may not be realized fully or at all, or may take longer to realize than
expected, and the value of our common stock may decline.
The
integration of APT into our business may result in material challenges, including, without limitation:
|
● |
the
diversion of management’s attention from ongoing business concerns; |
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developing
and managing internal financial and disclosure processes at APT, which has been a private company not subject to SEC reporting obligations; |
|
● |
managing
a more complex combined business; |
|
● |
expanding
operations to manufacture APT’s catheter products and overcoming our lack of manufacturing experience related to such products; |
|
● |
maintaining
employee morale, retaining key APT employees and the possibility that the integration process and organizational changes may adversely
impact the ability to maintain employee relationships; |
|
● |
transitioning
and maintaining business and operational relationships of APT, including suppliers, collaboration partners, employees and other counterparties; |
|
● |
risks
related to APT’s existing customer contracts and disputes with customers; |
|
● |
the
integration process not proceeding as expected, including due to a possibility of faulty assumptions or expectations regarding the
integration process or APT’s operations; |
|
● |
risks
related to litigation, disputes, investigations or other events that could increase our expenses, result in liability or require
that we take other action; |
|
● |
consolidating
corporate, administrative and compliance infrastructures and eliminating duplicative operations; |
|
● |
coordinating
geographically separate locations; |
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● |
unanticipated
issues in integrating information technology, communications and other systems; and |
|
● |
unforeseen
expenses, costs, liabilities or delays associated with the acquisition or the integration. |
Many
of these factors are outside of our control, and any one of them could result in delays, increased costs, decreases in the amount of
expected cost savings or synergies and diversion of management’s time and energy, which could materially affect our financial position,
results of operations and cash flows.
Our
future results may be adversely impacted if we do not effectively manage APT’s catheter manufacturing business following the completion
of the acquisition.
As
a result of the acquisition, we will be managing APT’s ongoing business of manufacturing, commercializing, development and sales
of APT’s catheters and related products and services. The manufacturing process of catheters is complex, highly technical, and
our prior experience in this field is dated. The process can be subject to periodic worldwide supply chain disruptions, including labor
shortages and inflationary pressures, and logistics delays which make it difficult for us to source parts and ship our products. We may
require a higher level of overhead than currently anticipated. Our ability to successfully manage this new aspect of our business will
depend, in part, upon management’s ability to design and implement strategic initiatives that address not only the integration
of APT into us, but also the increased scope of the combined business with its associated increased costs and complexity. There can be
no assurances that we will be successful in manufacturing catheter products or that we will realize the expected operating efficiencies,
cost savings and other benefits anticipated from the acquisition.
The
issuance of the Earnout Consideration will result in dilution to our stockholders and may adversely affect us, including the market price
of our securities.
At
the closing of the acquisition of APT on July 31, 2024, we issued 1,486,620 Closing Shares to the Selling Stockholder pursuant to the
Share Purchase Agreement. In addition, the Share Purchase Agreement requires us to issue additional Earnout Shares to the Selling Stockholder
upon achievement of certain global and US revenue targets for APT products as well as US and Europe regulatory approvals
of certain robotically-navigated catheters that APT will develop.
The
Share Purchase Agreement obligated us to file a resale registration statement relating to the Upfront Stock Consideration and additional
Earnout Shares. This prospectus is a part of that resale registration statement and covers the 1,486,620 Closing Shares and an
estimated 4,613,380 additional Earnout Shares. However, the exact number of shares we may be required to issue under the Share Purchase
Agreement for such milestones will be calculated based on the average of the closing per share price of Stereotaxis common stock immediately
prior to the dates such revenue performance and/or regulatory milestones are achieved, up to $24 million in total value through September
30, 2029, not to exceed 19.9% of the total number of shares of our common stock issued and outstanding immediately prior to July
31, 2024 (the “Share Cap Limitation”). In addition, the vesting of the right to receive the Earnout Shares would be accelerated
in the event of a change of control of Stereotaxis, based on a probability-weighted average estimate of the potential to achieve any
remaining milestones, discounted to its net present value taking into account expected time when earnouts related to the milestones would
become payable through September 30, 2029.
As
a result, the actual number of additional Earnout Shares we may be required to issue could be materially greater or less than our estimate,
depending whether and to what extent the future revenue milestones are met and/or regulatory approvals are obtained, as well as the actual
average closing price of our common stock calculated pursuant to a formula near the time such milestones are achieved and/or whether
a change of control occurs. If we are required to issue Earnout Shares under the Share Purchase Agreement, there could be significant
additional dilution to the Company’s stockholders. Moreover, even if we are not required to issue any Earnout Shares, the potential
for the issuance of such shares may negatively affect the trading price of our common stock in anticipation of such potential dilution.
Sales of a substantial number of shares comprising the Closing Shares or any Earnout Shares in the public market, or the perception that
such sales may occur, could adversely affect the market price of our securities.
Under
certain circumstances, we may take certain actions to achieve the milestones under the Purchase Agreement that we would not have undertaken
if we had not completed the acquisition, which may have an adverse effect on the historical business of Stereotaxis.
During
the revenue earnout periods under our Purchase Agreement, which end on September 30, 2029, we agreed to operate APT and its business
in a commercially reasonable manner as conducted prior to the closing, taken as a whole, including maintaining relationships with customers,
suppliers, independent contractors, governmental entities, and others having business dealings with it consistent with APT’s practice
prior to the closing. We agreed not to take any action during the revenue earnout periods which has as its intended purpose the diminution
of the earnout consideration.
While
we retain the sole authority to operate and control APT’s business and its operations, including without limitation, any and all
decisions relating various aspects of their and our combined business, we may nevertheless take certain actions related to the milestones
that we would not have undertaken if we had not completed the acquisition.
FORWARD-LOOKING
STATEMENTS
The
prospectus contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1985.
These statements relate to, among other things:
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● |
Our
business, operating, sales and marketing, and regulatory strategies; |
|
● |
Our
overall liquidity and our ability to fund operations; |
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● |
Our
ability to convert backlog to revenue; |
|
● |
Risks
related to our recently completed acquisition of APT, as set forth in “Risk Factors” below; |
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● |
The
ability of physicians to perform certain medical procedures with our products safely, effectively and efficiently; |
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The
adoption of our products by hospitals and physicians; |
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● |
The
market opportunity for our products, including expected demand for our products; |
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● |
The
timing and prospects for regulatory approval of our additional disposable interventional devices; |
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● |
The
success of our business partnerships and strategic relationships; |
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● |
Our
industry generally, and overall macroeconomic conditions; |
|
● |
Our
estimates regarding our capital requirements; |
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● |
Our
plans for hiring additional personnel; and |
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● |
Any
of our other plans, objectives, expectations and intentions contained or incorporated into this prospectus that are not historical
facts. |
These
statements relate to future events or future financial performance, and involve known and unknown risks, uncertainties, and other factors
that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results,
levels of activity, performance or achievements expressed or implied by such forward-looking statements. In some cases, you can identify
forward-looking statements by terminology such as “may”, “will”, “should”, “could”, “expects”,
“plans”, “intends”, “anticipates”, “believes”, “estimates”, “predicts”,
“potential”, or “continue”, or the negative of such terms or other comparable terminology. Although we believe
that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity,
performance, or achievements. These statements are only predictions.
Factors
that may cause our actual results to differ materially from our forward-looking statements include, among others, changes in general
economic and business conditions and the risks and other factors set forth in “Risk Factors” in this prospectus and
elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2023, as revised or supplemented by our subsequent quarterly
reports on Form 10-Q or our current reports on Form 8-K, as well as any amendments thereto, as filed with the SEC and which are incorporated
herein by reference.
Our
actual results may be materially different from what we expect. We undertake no duty to update these forward-looking statements after
the date of this prospectus, even though our situation may change in the future. We qualify all of our forward-looking statements by
these cautionary statements.
USE
OF PROCEEDS
The
Selling Stockholder will receive all of the proceeds from the sale of shares of common stock under this prospectus. We will not receive
any proceeds from these sales. The Selling Stockholder will pay any underwriting discounts and agent’s commissions and expenses
they incur for brokerage, accounting, tax or legal services or any other expenses they incur in disposing of the shares. We will bear
all other costs, fees and expenses incurred in effecting the registration of the shares covered by this prospectus. These may include,
without limitation, all registration and filing fees, SEC filing fees and expenses of compliance with state securities or “blue
sky” laws.
SELLING
STOCKHOLDER
Pursuant
to the Share Purchase Agreement, we completed the acquisition of 100% of the share capital of APT on July 31, 2024, and issued 1,486,620
Closing Shares (the “Closing Shares”) to the Selling Stockholder, the sole holder of the capital stock of APT, at the closing.
Under the terms of the Share Purchase Agreement, we will become obligated to issue certain additional Earnout Shares to the Selling Stockholder
as earnout consideration if certain revenue and regulatory approval milestones specified in the Share Purchase Agreement are achieved.
The
number of shares of common stock being registered hereunder is comprised of (i) the 1,486,620 Closing Shares issued to the Selling Stockholder
on July 31, 2024, pursuant to the Share Purchase Agreement and (ii) 4,613,380 additional Earnout Shares which may be issued to the Selling
Stockholder. The number of Earnout Shares offered for sale by this prospectus is a good faith estimate of the number of shares we reasonably
expect to issue to the Selling Stockholder pursuant to the Share Purchase Agreement in respect of the achievement of the revenue and
regulatory approval milestones specified therein.
Under
the terms of the Share Purchase Agreement, we agreed to file a registration statement under the Securities Act within 45 business days
after the closing of the APT acquisition covering the Closing Shares and Earnout Shares and to use our reasonable best efforts to cause
the registration statement to be declared effective as soon as reasonably practicable following its filing. In addition, we agreed that,
upon the registration statement being declared effective, we will maintain the effectiveness of the registration statement until the
earlier of the 6th anniversary of the first effective date of the registration statement and the date that all of the Earnout
Shares are issued or issuable pursuant as earnout consideration to the Share Purchase Agreement have actually been sold, or may be sold
pursuant to Rule 144 under the Securities Act without any restrictions (including as to volume or manner of sale).
We
are registering the Shares in order to permit the Selling Stockholder to offer the shares issued in connection with the APT acquisition
for resale from time to time pursuant to this prospectus. Only the Closing Shares have been issued as of the date of this prospectus.
The Earnout Shares have not been earned and are not currently outstanding. The actual number of Earnout Shares issued to the Selling
Stockholder could be materially greater or less than 4,613,380 shares of common stock depending whether and to what extent the future
revenue milestones are met and/or regulatory approvals are obtained, as well as the actual average closing price of our common stock
calculated pursuant to a formula near the time such milestones are achieved.
The
following table sets forth:
| ● | The
name of the Selling Stockholder; |
| ● | The
number of shares of our common stock owned by the Selling Stockholder prior to this offering; |
| ● | The
number of shares of our common stock being offered pursuant to this prospectus; and |
| ● | The
number of shares of our common stock to be owned upon completion of this offering, assuming
all such shares are sold. |
This
table is prepared based on information supplied to us by the Selling Stockholder and reflects holdings as of July 31, 2024, following
the issuance of the Closing Shares. As used in this prospectus, the term “Selling Stockholder” includes the Selling Stockholder
listed below, and any donees, pledges, transferees or other successors-in-interest selling shares on-sale related transfer. The number
of shares in the column “Shares Being Offered” represents all of the Shares that the Selling Stockholder may offer under
this prospectus. The Selling Stockholder may sell some, all or none of its shares. We do not know how long the selling stockholders will
hold the shares before selling them, and we currently have no agreements, arrangements or understandings with the Selling Stockholder
regarding the sale of any of the Shares.
Beneficial
ownership is determined in accordance with Rule 13d-3(d) promulgated by the SEC under the Exchange Act of 1934, as amended. The percentage
of shares beneficially owned prior to the offering is based on 84,656,254 shares of our common stock actually outstanding as of July
31, 2024, which includes the Closing Shares of our common stock issued to the Selling Stockholder on July 31, 2024.
The
Selling Stockholder may also sell, transfer or otherwise dispose of all or a portion of its shares in transactions exempt from the registration
requirements of the Securities Act, or pursuant to another effective registration statement covering those shares. Because the Selling
Stockholder may dispose of all, none or some portion of their securities, no estimate can be given as to the number of securities that
will be beneficially owned by the Selling Stockholder holder upon termination of this offering. See “Plan of Distribution.”
For purposes of the table below, however, we have assumed that after termination of this offering none of the securities covered by this
prospectus will be beneficially owned by the Selling Stockholder and further assumed that the Selling Stockholder will not acquire beneficial
ownership of any additional securities during the offering.
Selling
Stockholder | |
Shares
Beneficially Owned Prior to This Offering | | |
Percentage
of Common Stock Owned Before Offering | | |
Maximum
Number of shares of Common Stock to be Sold Pursuant to this Prospectus | | |
Number
of shares of Common Stock Beneficially Owned After Offering | | |
Percentage
of Common Stock Owned After Offering | |
APT
Holding Company, Inc. (1)12560 Fletcher Lane, Suite 300 Rogers, Minnesota 55374 | |
| 1,486,620 | (2) | |
| 1.76 | % | |
| 6,100,000 | (3) | |
| — | (4) | |
| * | |
*
Indicates ownership of less than 1%
(1) |
Voting
and investment decisions with respect to these securities are made by a majority of the Board of Directors of the Selling Stockholder
comprised of three persons, who are Steven Berhow, Timothy S. Hanson and Corey L. Teigen. None of those persons individually has
voting or dispositive power over the shares and none of those persons therefore are deemed to have beneficial ownership over those
securities under the so-called “rule of three” pursuant to SEC guidance. |
(2) |
Consists
of Closing Shares issued in connection with the APT acquisition. |
(3) |
Consists
of common stock shares issued and issuable in connection with the APT acquisition, including an estimate of up to 4,613,380
Earnout Shares issuable to the Selling Stockholder upon achievement of certain revenue milestones and regulatory approvals. |
(4) |
Assumes
the sale of all shares offered hereby and that the Selling Stockholder does not acquire beneficial ownership of any additional shares
of our common stock other than the Closing Shares or the Earnout Shares. |
PLAN
OF DISTRIBUTION
We
are registering the Closing Shares previously issued to the Selling Stockholder and the Earnout Shares that are potentially issuable
to the Selling Stockholder upon achievement of revenue and regulatory approval milestones set forth in the Share Purchase Agreement,
in order to permit the Selling Stockholder to offer the shares for resale from time to time after the date of this prospectus. We will
not receive any of the proceeds from the sale by the Selling Stockholder of the Shares. We will bear all fees and expenses incident to
our obligation to register the Shares.
The
Selling Stockholder, which as used herein includes donees, pledgees, transferees or other successors-in-interest selling shares of our
common stock or interests in shares of our common stock received after the date of this prospectus from the Selling Stockholder as a
gift, pledge, partnership distribution or other transfer, may, from time to time, sell, transfer or otherwise dispose of any or all of
their shares of our common stock or interests in shares of our common stock on any stock exchange, market or trading facility on which
the shares are traded or in private transactions directly or through one or more underwriters, broker-dealers or agents. If the shares
of our common stock or interests in shares of our common stock are sold through underwriters or broker-dealers, the Selling Stockholder
will be responsible for underwriting discounts or commissions or agent’s commissions. These dispositions may be sold in one or
more transactions, at fixed prices, at prevailing market prices at the time of sale, at prices related to the prevailing market price,
at varying prices determined at the time of sale, or at negotiated prices. These sales may be effected in transactions which may involve
cross or block transactions.
The
Selling Stockholder may use any one or more of the following methods when disposing of shares or interests therein:
|
● |
Transactions
on any national securities exchange or U.S. inter-dealer quotation system of a registered national securities association on which
the shares may be listed or quoted at the time of sale; |
|
● |
Over-the-counter
market transactions; |
|
● |
Transactions
otherwise than on these exchanges or systems or in the over-the-counter market; |
|
● |
Ordinary
brokerage transactions and transactions in which the broker-dealer solicits purchasers; |
|
● |
Block
trades in which the broker-dealer will attempt to sell the shares as agent, but may position and resell a portion of the block as
principal to facilitate the transaction; |
|
● |
Purchases
by a broker-dealer as principal and resale by the broker-dealer for its account; |
|
● |
An
exchange distribution in accordance with the rules of the applicable exchange; |
|
● |
Privately
negotiated transactions; |
|
● |
Through
the distribution of our common stock by the Selling Stockholder to its partners, members or stockholders; |
|
● |
Through
one or more underwritten offerings on a firm commitment or best efforts basis; |
|
● |
In
sales pursuant to Rule 144; |
|
● |
Through
the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise; |
|
● |
Via
agreements between broker-dealers and the Selling Stockholder to sell a specified number of such shares at a stipulated price per
share; |
|
● |
A
combination of any such methods of sale; and |
|
● |
Any
other method permitted by applicable law. |
The
Selling Stockholder has informed us that it has pledged the shares of our common stock owned by the Selling Stockholder, including the
Closing Shares and Earnout Shares that may become issuable as earnout consideration, as collateral in connection with a third-party bank
loan. If the Selling Stockholder defaults in the performance of its secured obligations, such bank lender (or any successor the pledgees
or secured parties), may offer and sell the shares of our common stock, from time to time, under this prospectus, or under an amendment
to this prospectus under Rule 424(b)(3) or other applicable provision of the Securities Act amending the list of selling stockholders
to include the pledgee, transferee or other successors-in-interest as selling stockholders under this prospectus. Subject to its
obligations under such pledge arrangement, the Selling Stockholder also may transfer or donate the shares of our common stock in other
circumstances, in which case the transferees, donees, pledgees or other successors-in-interest will be the selling beneficial owners
for purposes of this prospectus.
In
connection with the sale of securities or otherwise, the Selling Stockholder, subject to the pledge arrangement described above, may
enter into hedging transactions with broker-dealers or other financial institutions, which may in turn engage in short sales of the shares
in the course of hedging the positions they assume. The Selling Stockholder may also sell shares short and deliver these shares to close
out their short positions and to return borrowed shares in connection with such short sales, or loan or pledge the shares to broker-dealers
that in turn may sell these shares. The Selling Stockholder may also enter into option or other transactions with broker-dealers or other
financial institutions or the creation of one or more derivative securities which require the delivery to such broker-dealer or other
financial institution of shares offered by this prospectus, which shares such broker-dealer or other financial institution may resell
pursuant to this prospectus (as supplemented or amended to reflect such transaction).
The
Selling Stockholder also may resell all or a portion of the shares in open market transactions in reliance upon Rule 144 under the Securities
Act, provided that they meet the criteria and conform to the requirements of that rule.
The
Selling Stockholder and any underwriters, broker-dealers or agents that participate in the distribution of our common stock may be deemed
to be “underwriters” within the meaning of Section 2(11) of the Securities Act. Any discounts, commissions, concessions or
profit earned by any such broker-dealer on any resale of the shares may be deemed to be underwriting discounts and commissions under
the Securities Act. Selling stockholders who are “underwriters” within the meaning of Section 2(a)(11) of the Securities
Act will be subject to the prospectus delivery requirements of the Securities Act, including Rule 172 thereunder and may be subject to
certain statutory liabilities of, including but not limited to, Sections 11, 12 and 17 of the Securities Act and Rule 10b-5 under the
Exchange Act. To the extent applicable, we will make copies of this prospectus (as it may be supplemented or amended from time to time)
available to the Selling Stockholder for the purpose of satisfying the prospectus delivery requirements of the Securities Act. The Selling
Stockholder may indemnify any broker-dealer that participates in transactions involving the sale of the shares against certain liabilities,
including liabilities arising under the Securities Act.
To
the extent required, the shares of our common stock to be sold, the name of the Selling Stockholder, the respective purchase prices and
public offering prices, the names of any agents, dealer or underwriter, and any applicable commissions or discounts with respect to a
particular offer will be set forth in an accompanying prospectus supplement or, if appropriate, a post-effective amendment to the registration
statement of which this prospectus forms a part.
If
the actual number of Shares issued or anticipated to be issued as Earnout Shares in respect of milestones achieved exceeds or is expected
to exceed the number of Earnout Shares registered under the registration statement, we will use commercially reasonable efforts to promptly
file an amendment to the registration statement or file a new registration statement on any appropriate form under the Securities Act
of all such excess Shares. We are required to pay certain fees and expenses incurred by us as incident to the registration of the Shares.
The Share Purchase Agreement provides that in no event will the number of Shares issuable under the Share Purchase Agreement exceed 19.9%
of the total number of shares of our common stock issued and outstanding immediately prior to July 31, 2024 without obtaining approval
of stockholders pursuant to the applicable rules of the NYSE American.
In
order to comply with the securities laws of some states, if applicable, the Shares may be sold in these jurisdictions only through registered
or licensed brokers or dealers. In addition, in some states the Shares may not be sold unless such Shares have been registered or qualified
for sale or an exemption from registration or qualification requirements is available and is complied with.
The
Selling Stockholder and any other person participating in such distribution will be subject to applicable provisions of the Exchange
Act and the rules and regulations thereunder, including, without limitation, to the extent applicable, Regulation M of the Exchange Act,
which may limit the timing of purchases and sales of any of the shares of our common stock by the Selling Stockholder and any other participating
person. To the extent applicable, Regulation M may also restrict the ability of any person engaged in the distribution of the shares
of our common stock to engage in market-making activities with respect to the shares of our common stock. All of the foregoing may affect
the marketability of the shares of our common stock and the ability of any person or entity to engage in market-making activities with
respect to the shares of our common stock.
Broker-dealers
engaged by the Selling Stockholder may arrange for other broker-dealers to participate in sales. If the Selling Stockholder effects such
transactions by selling shares of our common stock to or through underwriters, broker-dealers or agents, such underwriters, broker-dealers
or agents may receive commissions in the form of discounts, concessions or commissions from the Selling Stockholder or commissions from
purchasers of the shares of our common stock for whom they may act as an agent or to whom they may sell as a principal. Such commissions
will be in amounts to be negotiated, and the Selling Stockholder has advised us that, except as set forth in a supplement to this prospectus,
in the case of an agency transaction, such commissions will not be in excess of a customary brokerage commission in compliance with FINRA
Rule 2121 and, in the case of a principal transaction, any such markup or markdown will be in compliance with FINRA Rule 2121.
The
aggregate proceeds to the Selling Stockholder from the sale of our common stock offered by the Selling Stockholder will be the purchase
price of our common stock less discounts or commissions, if any. The Selling Stockholder reserves the right to accept and, together with
their agents from time to time, to reject, in whole or in part, any proposed purchase of our common stock to be made directly or through
agents. There can be no assurance that the Selling Stockholder will sell any or all of the shares of our common stock registered pursuant
to the registration statement of which this prospectus forms a part.
We
have agreed with the Selling Stockholder to keep the registration statement of which this prospectus forms a part effective until the
earliest to occur of (i) the sixth anniversary of the date this registration statement has first become effective, or (ii) the date that
all of the shares of our common stock issued or issuable pursuant to the Share Purchase Agreement have actually been sold, or may be
sold pursuant to Rule 144 under the Securities Act without any restrictions (including as to volume or manner of sale). Once sold under
the registration statement of which this prospectus forms a part, the shares of our common stock will be freely tradable in the hands
of persons other than our affiliates.
DESCRIPTION
OF SECURITIES
General
As
of the date of this prospectus, we are authorized to issue up to 310 million shares of capital stock, par value $0.001 per share, divided
into two classes designated, respectively, “common stock” and “preferred stock.” Of such shares authorized, 300
million shares are designated as common stock, and 10 million shares are designated as preferred stock.
The
following is a summary of the material terms of our capital stock and certain provisions of our amended and restated Certificate of Incorporation
and amended and restated Bylaws. Since the terms of our Certificate of Incorporation and Bylaws, and Delaware law, are more detailed
than the general information provided below, you should only rely on the actual provisions of those documents and Delaware law. If you
would like to read those documents, they are on file with the SEC, as described under the heading “Where You Can Find Additional
Information” below.
Common
Stock
As
of July 31, 2024, there were approximately 84,656,254 shares of our common stock outstanding that were held of record by approximately
419 stockholders, although we believe that there is a significantly larger number of beneficial owners of our common stock. The holders
of common stock are entitled to one vote for each share held of record on all matters submitted to a vote of the stockholders. Our stockholders
do not have cumulative voting rights in the election of directors. Accordingly, holders of a majority of the shares voting are able to
elect all of the directors. Subject to preferences that may be granted to any then outstanding preferred stock, holders of common stock
are entitled to receive ratably only those dividends as may be declared by the Board of Directors out of funds legally available therefore,
as well as any distributions to the stockholders. In the event of our liquidation, dissolution or winding up, holders of common stock
are entitled to share ratably in all of our assets remaining after we pay our liabilities and distribute the liquidation preference of
any then outstanding preferred stock. Holders of common stock have no preemptive or other subscription or conversion rights. There are
no redemption or sinking fund provisions applicable to the common stock.
Series
A Convertible Preferred Stock
On
September 29, 2016, we filed a Certificate of Designations, Preferences and Rights of Series A Convertible Preferred Stock (the
“Certificate of Designations”) to authorize the Series A Convertible Preferred Stock.
Pursuant
to the Certificate of Designations, holders of Series A Convertible Preferred Stock are entitled to vote on an as-converted basis with
holders of common stock, subject to specified beneficial ownership issuance limitations. The Series A Convertible Preferred Stock bears
dividends at a rate of six percent (6.0%) per annum, which are cumulative and accrue daily from the date of issuance on the $1,000 stated
value. Such dividends will not be paid in cash, except in connection with any liquidation, dissolution or winding up of the Company or
any redemption of the Series A Convertible Preferred Stock. Instead, the value of the accrued dividends is added to the liquidation preference
of the Series A Convertible Preferred Stock and will increase the number of shares of common stock issuable upon conversion.
Each
share of Series A Convertible Preferred Stock is convertible at the option of the holder from and after the original date of issuance,
at an initial conversion price of $0.65 per share, subject to adjustment in the event of stock splits, dividends, mergers, sales of all
or substantially all of our assets or similar transactions, subject to specified beneficial ownership issuance limitations. If we fail
to timely issue shares of Series A Convertible Preferred Stock or common stock issuable on conversion or remove legends from any such
shares, in each case as and when required to do so under the Certificate of Designations, we will be required to pay liquidated damages
to the affected holder in an amount equal to 0.25% of the product of (i) the number of shares of common stock to be issued or issuable
on conversion of the relevant shares of Series A Convertible Preferred Stock and (ii) the weighted average price of the common stock
on the last date before such failure, and may be required to pay additional or alternative damages in specified circumstances at the
option of the holder. Each holder of Series A Convertible Preferred Stock has the right to require us to redeem such holder’s Series
A Convertible Preferred Stock upon the occurrence of specified events, including mergers, sales of substantially all assets of the Company,
and certain defaults under the Certificate of Designations and under the Registration Rights Agreement entered into in connection with
the Financing Transaction. We also have the right to redeem the Series A Convertible Preferred Stock in the event of a Change of Control
Transaction (as defined in the Certificate of Designations).
The
Series A Convertible Preferred Stock ranks senior to our common stock as to distributions and payments upon the liquidation, dissolution
and winding up of the Company. No such distributions or payments upon the liquidation, dissolution and winding up of the Company may
be made to the holders of common stock unless and until the holders of Series A Convertible Preferred Stock have received the stated
value of $1,000 per share plus any accrued and unpaid dividends. Until all shares of Series A Convertible Preferred Stock have been converted
or redeemed, no dividends may be paid on the common stock without the prior express written consent of the holders of a majority of the
outstanding Series A Convertible Preferred Stock. In the event that dividends or other distributions of assets are made or paid by us
to the holders of the common stock, the holders of Series A Convertible Preferred Stock are entitled to participate in such dividend
or distribution on an as-converted basis (without giving effect to any limitations on conversion).
Anti-Takeover
Provisions of Delaware Law and Charter Provisions
Interested
Stockholder Transactions. We are subject to Section 203 of the Delaware General Corporation Law, which prohibits a Delaware corporation
from engaging in any “business combination” with any “interested stockholder” for a period of three years after
the date that such stockholder became an interested stockholder, with the following exceptions:
|
● |
Before
such date, the Board of Directors of the corporation approved either the business combination or the transaction that resulted in
the stockholder becoming an interested stockholder; |
|
|
|
|
● |
Upon
consummation of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder owned
at least 85% of the voting stock of the corporation outstanding at the time the transaction began, excluding for purposes of determining
the number of shares outstanding those shares owned by persons who are directors and also officers and by employee stock plans in
which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered
in a tender or exchange offer; or |
|
● |
On
or after such date, the business combination is approved by the Board of Directors and authorized at an annual or special meeting
of the stockholders, and not by written consent, by the affirmative vote of at least 66-2/3% of the outstanding voting stock that
is not owned by the interested stockholder. |
Section
203 defines “business combination” to include the following:
|
● |
Any
merger or consolidation involving the corporation and the interested stockholder; |
|
● |
Any
sale, transfer, pledge or other disposition involving the interested stockholder of assets with a value of 10% or more of either
the total assets or all outstanding stock of the corporation; |
|
● |
Subject
to certain exceptions, any transaction that results in the issuance or transfer by the corporation of any stock of the corporation
to the interested stockholder; |
|
● |
Any
transaction involving the corporation that has the effect of increasing the proportionate share of the stock or any class or series
of the corporation beneficially owned by the interested stockholder; or |
|
● |
The
receipt by the interested stockholder of the benefit of any loans, advances, guarantees, pledges or other financial benefits by or
through the corporation. |
In
general, Section 203 defines “interested stockholder” as an entity or person beneficially owning 15% or more of the outstanding
voting stock of the corporation or any entity or person affiliated with or controlling or controlled by such an entity or person.
In
addition, some provisions of our amended and restated Certificate of Incorporation and amended and restated Bylaws may be deemed to have
an anti-takeover effect and may delay or prevent a tender offer or takeover attempt that a stockholder might consider in its best interest,
including those attempts that might result in a premium over the market price for the shares held by stockholders.
Cumulative
Voting. Our amended and restated Certificate of Incorporation expressly denies stockholders the right to cumulative voting in the
election of directors.
Classified
Board of Directors. Our Board of Directors is divided into three classes of directors serving staggered three-year terms. As a result,
one-third of the Board of Directors is elected each year, which has the effect of requiring at least two annual stockholder meetings,
instead of one, to replace a majority of the members of the board. These provisions, when coupled with the provision of our amended and
restated Certificate of Incorporation authorizing only the Board of Directors to fill vacant directorships or increase the size of the
Board of Directors, may deter a stockholder from removing incumbent directors and simultaneously gaining control of the Board of Directors
by filling the vacancies created by such removal with its own nominees. The Certificate of Incorporation also provides that directors
may be removed by stockholders only for cause. Since the Board of Directors has the power to retain and discharge our officers, these
provisions could also make it more difficult for existing stockholders or another party to effect a change in management.
Stockholder
Action; Special Meeting of Stockholders. Our amended and restated Certificate of Incorporation and Bylaws do not permit stockholders
to act by written consent. They provide that special meetings of our stockholders may be called only by the Chairman of our Board of
Directors, our Chief Executive Officer or a majority of our directors. Further, our amended and restated Certificate of Incorporation
provides that the stockholders may amend Bylaws adopted by the Board of Directors or specified provisions of the Certificate of Incorporation
by the affirmative vote of at least 66-2/3% of our capital stock.
Advance
Notice Requirements for Stockholder Proposals and Directors Nominations. Our amended and restated Bylaws provide that stockholders
seeking to bring business before an annual meeting of stockholders, or to nominate candidates for election as directors at an annual
meeting of stockholders, must provide timely notice in writing. To be timely, a stockholder’s notice must be delivered to or mailed
and received at our principal executive office not more than 120 days or less than 90 days prior to the anniversary date of the immediately
preceding annual meeting of stockholders. However, in the event that the annual meeting is called for a date that is not within 30 days
before or after such anniversary date, notice by the stockholder in order to be timely must be received no later than the close of business
on the 10th day following the date on which notice of the date of the annual meeting was mailed to stockholders or made public, whichever
first occurs. Our amended and restated Bylaws also specify requirements as to the form and content of a stockholder’s notice. These
provisions may preclude stockholders from bringing matters before an annual meeting of stockholders or from nominating directors at an
annual meeting of stockholders.
Authorized
But Unissued Shares. Our authorized but unissued shares of common stock and preferred stock are available for future issuance without
stockholder approval. These additional shares may be utilized for a variety of corporate purposes, including future public offerings
to raise additional capital, corporate acquisitions and employee benefit plans. The existence of authorized but unissued shares of common
stock and preferred stock could render more difficult or discourage an attempt to obtain control of Stereotaxis by means of a proxy contest,
tender offer, merger or otherwise.
Amendments;
Supermajority Vote Requirements. The Delaware General Corporation Law provides generally that the affirmative vote of a majority
of the shares entitled to vote on any matter is required to amend a corporation’s Certificate of Incorporation or Bylaws, unless
either a corporation’s Certificate of Incorporation or Bylaws require a greater percentage. Our amended and restated Certificate
of Incorporation imposes supermajority vote requirements of 66-2/3% of the voting power of our capital stock in connection with the amendment
of certain provisions of our amended and restated Certificate of Incorporation and amended and restated Bylaws, including those provisions
relating to the classified Board of Directors, action by written consent and the ability of stockholders to call special meetings.
Market
Information
Our
common stock is listed on the NYSE American under the symbol “STXS.”
Transfer
Agent and Registrar
The
transfer agent and registrar for our common stock is Broadridge Corporate Issuer Solutions, Inc. Its address is Broadridge Corporate
Issuer Solutions, P.O. Box 1342, Brentwood, NY 11717-0718, and its telephone number is (855) 300-4994.
LEGAL
MATTERS
The
validity of the securities offered hereby has been passed upon for us by Bryan Cave Leighton Paisner LLP, St. Louis, Missouri.
EXPERTS
Ernst
& Young LLP, independent registered public accounting firm, has audited our financial statements and schedule included in our Annual
Report on Form 10-K for the year ended December 31, 2023, as set forth in their report thereon, which are incorporated by reference in
this prospectus and elsewhere in the registration statement. Our financial statements and schedule as of December 31, 2023, are incorporated
by reference in reliance on Ernst & Young LLP’s report, given on their authority as experts in accounting and auditing.
WHERE
YOU CAN FIND ADDITIONAL INFORMATION
We
file annual, quarterly and current reports, proxy statements and other information with the SEC. Our SEC filings are available to the
public over the Internet at the SEC’s website at http://www.sec.gov. The SEC’s website contains reports, proxy and information
statements and other information regarding issuers, such as us, that file electronically with the SEC. You may also read and copy any
document we file with the SEC at the SEC’s Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. You may also obtain
copies of these documents at prescribed rates by writing to the SEC. Please call the SEC at 1-800-SEC-0330 for further information on
the operation of its Public Reference Room.
We
have filed with the SEC a registration statement under the Securities Act that registers the distribution of these securities. The registration
statement, including the attached exhibits and schedules, contains additional relevant information about us and the securities. This
prospectus does not contain all of the information set forth in the registration statement. You can get a copy of the registration statement,
at prescribed rates, from the SEC at the address listed above. The registration statement and the documents referred to below under “Incorporation
of Certain Documents by Reference” are also available on our Internet website, http://www.stereotaxis.com, under “Investors—SEC
Filings.” We have not incorporated by reference into this prospectus the information on our website, and you should not consider
it to be a part of this prospectus.
INCORPORATION
OF CERTAIN DOCUMENTS BY REFERENCE
The
SEC allows us to “incorporate by reference” information into this prospectus, which means we can disclose important information
to you by referring you to other documents that we filed separately with the SEC. You should consider the incorporated information as
if we reproduced it in this prospectus, except for any information directly superseded by information subsequently filed with the SEC
and incorporated in this prospectus.
We
incorporate by reference into this prospectus the following documents (SEC File No. 001-36159), which contain important information about
us and our business and financial results:
|
● |
Our
Annual Report filed on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on March 8, 2024; |
|
● |
Our
Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2024, filed with the SEC on May 15, 2024; |
|
● |
Our
Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2024, filed with the SEC on August 14, 2024; |
|
● |
Our
Current Reports on Form 8-K filed with the SEC on May 13, 2024, May 16, 2024, August 2, 2024, and August 12, 2024; |
|
● |
The
portions of our Definitive Proxy Statement on Schedule 14A, filed on April 4, 2024, as supplemented on April 8, 2024, that are deemed
“filed” with the SEC under the Exchange Act; |
|
● |
The
description of our common stock filed as Exhibit 4.2 to our Annual Report on Form 10-K for the fiscal year ended December 31, 2023,
filed with the SEC on March 8, 2024 and any amendment or report filed with the SEC for the purpose of updating the description. |
We
incorporate by reference any additional filings made by us with the SEC under Section 13(a), 13(c), 14 or 15(d) of the Securities Exchange
Act of 1934 (other than the portions of those made pursuant to Item 2.02 or Item 7.01 of Form 8-K or other information “furnished”
to the SEC) after the filing of the initial registration statement (including all such documents that we may file with the SEC after
the date the registration statement was initially filed and prior to the effectiveness of the registration statement) and before the
filing of a post-effective amendment to the registration statement of which this prospectus is a part that indicates that all securities
offered hereunder have been sold or that deregisters all securities then remaining unsold (other than information furnished and not filed
with the SEC). These documents may include periodic reports, like Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current
Reports on Form 8-K, as well as Proxy Statements. Any material that we subsequently file with the SEC will automatically update and replace
the information previously filed with the SEC.
For
purposes of the registration statement of which this prospectus is a part, any statement contained in a document incorporated or deemed
to be incorporated herein by reference shall be deemed to be modified or superseded to the extent that a statement contained herein or
in any other subsequently filed document which also is or is deemed to be incorporated herein by reference modifies or supersedes such
statement in such document. Any statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute
a part of the registration statement of which this prospectus is a part.
You
may receive copies of any of the documents incorporated by reference (excluding exhibits, unless the exhibits are specifically incorporated)
at no charge to you by writing or calling the Investor Relations Department at Stereotaxis, Inc., 710 North Tucker Boulevard, Suite 110,
St. Louis, Missouri 63101, telephone number (314) 678-6100.
PART
II INFORMATION NOT REQUIRED IN PROSPECTUS
Item
14. Other Expenses of Issuances and Distribution.
The
following table sets forth the costs and expenses, other than underwriting discounts and commissions, payable by Stereotaxis, Inc. in
connection with the issuance and distribution of the securities being registered. All amounts are estimates except the SEC registration
fee.
Securities and Exchange Commission filing fee | |
$ | 1,711 | |
Legal fees and expenses | |
| 20,000 | * |
Accounting fees and expenses | |
| 10,000 | * |
Edgar fees and printing
expenses | |
| - | * |
Total
expenses | |
$ | 31,711 | |
*
Estimated
Item
15. Indemnification of Directors and Officers.
Our
amended and restated Certificate of Incorporation provides that, to the fullest extent permitted by the Delaware General Corporation
Law as the same exists or may hereafter be amended, our directors shall not be liable to the Company or our stockholders for monetary
damages for breach of fiduciary duty as a director. In addition, our Certificate of Incorporation provides that we may, to the fullest
extent permitted by law, indemnify any person made or threatened to be made a party to an action, suit or proceeding, whether criminal,
civil, administrative or investigative, by reason of the fact that such person or his or her testator or intestate is or was a director,
officer or employee of the Company, or any predecessor of the Company, or serves or served at any other enterprise as a director, officer
or employee at the request of the Company.
Our
amended and restated Bylaws provide that the Company shall indemnify our directors and officers to the fullest extent not prohibited
by the Delaware General Corporation Law or any other law. We are not required to indemnify any director or officer in connection with
a proceeding brought by such director or officer unless (i) such indemnification is expressly required by law; (ii) the proceeding was
authorized by our Board of Directors; or (iii) such indemnification is provided by the Company, in its sole discretion, pursuant to the
powers vested in the Company under the Delaware General Corporation Law or any other applicable law. In addition, our Bylaws provide
that the Company may indemnify its employees and other agents as set forth in the Delaware General Corporation Law or any other applicable
law.
We
have also entered into separate indemnification agreements with our directors that require us, among other things, to indemnify each
of them against certain liabilities that may arise by reason of their status or service with the Company or on behalf of the Company,
other than liabilities arising from willful misconduct of a culpable nature. The Company is not required to indemnify under the agreement
for (i) actions initiated by the director without the authorization of consent of the Board of Directors; (ii) actions initiated to enforce
the indemnification agreement unless the director is successful; (iii) actions resulting from violations of Section 16 of the Exchange
Act in which a final judgment has been rendered against the director; and (iv) actions to enforce any non-compete or non-disclosure provisions
of any agreement.
The
indemnification provided for above provides for reimbursement of all losses of the indemnified party including, expenses, judgment, fines
and amounts paid in settlement. The right to indemnification set forth above includes the right for us to pay the expenses (including
attorneys’ fees) incurred in defending any such proceeding in advance of its final disposition in certain circumstances.
The
Delaware General Corporation Law provides that indemnification is permissible only when the director, officer, employee, or agent acted
in good faith and in a manner reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect
to any criminal action or proceeding, had no reasonable cause to believe the conduct was unlawful. The Delaware General Corporation Law
also precludes indemnification in respect of any claim, issue, or matter as to which an officer, director, employee, or agent shall have
been adjudged to be liable to the corporation unless and only to the extent that the Court of Chancery of the State of Delaware or the
court in which such action or suit was brought shall determine that, despite such adjudication of liability, but in view of all the circumstances
of the case, such person is fairly and reasonably entitled to indemnity for such expenses which the Court of Chancery or such other court
deems proper.
See
Item 17 for information regarding our undertaking to submit to adjudication the issue of indemnification for violation of the securities
laws.
The
Registrant maintains insurance policies that provide coverage to its directors and officers against certain liabilities.
Item
16. Exhibits.
The
following documents are filed as exhibits to this registration statement:
Exhibit
Number |
|
Document
Description |
2.1†# |
|
Share
Purchase Agreement, dated as of May 11, 2024, by and among the Company, Access Point Technologies EP, Inc. and APT Holding Company,
Inc., as seller, incorporated by reference to Exhibit 2.1 of the Registrant’s 10-Q (File No. 001-36159) for the fiscal quarter
ended June 30, 2024. |
|
|
|
2.2 |
|
Amendment
No. 1 to Share Purchase Agreement, dated as of July 31, 2024, by and among the Company, Access Point Technologies EP, Inc. and APT
Holding Company, Inc., as seller, incorporated by reference to Exhibit 2.2 of the Registrant’s 10-Q (File No. 001-36159) for
the fiscal quarter ended June 30, 2024. |
|
|
|
2.3# |
|
Form
of Voting and Support Agreement (included as Exhibit B to the Securities Share Purchase Agreement filed as Exhibit 2.1), incorporated
by reference to Exhibit 2.3 of the Registrant’s 10-Q (File No. 001-36159) for the fiscal quarter ended June 30, 2024. |
|
|
|
3.1a |
|
Restated
Articles of Incorporation of the Registrant, incorporated by reference to Exhibit 3.1 of the Registrant’s Form 10-Q (File No.
000-50884) for the fiscal quarter ended September 30, 2004. |
|
|
|
3.1b |
|
Certificate
of Amendment to Amended and Restated Certificate of Incorporation, incorporated by reference to Exhibit 3.1 of the Registrant’s
Form 8-K (File No. 000-50884) filed on July 10, 2012. |
|
|
|
3.2 |
|
Certificate
of Designations, Preferences and Rights of Series A Convertible Preferred Stock, incorporated by reference to Exhibit 3.1 of the
Registrant’s Current Report on Form 8-K (File No. 001-36159) filed on September 30, 2016. |
|
|
|
3.3 |
|
Restated
Bylaws of the Registrant, incorporated by reference to Exhibit 3.2 of the Registrant’s Form 10-Q (File No. 000-50884) for the
fiscal quarter ended September 30, 2004. |
|
|
|
4.1 |
|
Form of Specimen Stock Certificate, incorporated by reference to the Registration Statement on Form S-1 (File No. 333-115253) originally filed with the Commission on May 7, 2004, as amended thereafter, at Exhibit 4.1. |
|
|
|
4.2 |
|
Description
of Registrant’s securities registered pursuant to Section 12 of the Securities Exchange Act of 1934, incorporated by reference
to Exhibit 4.7 of the Registrant’s Form 10-K/A (File No. 001-36159) filed on April 9, 2020. |
|
|
|
5.1* |
|
Opinion
of Bryan Cave Leighton Paisner LLP |
|
|
|
23.1* |
|
Consent
of Ernst & Young LLP. |
|
|
|
23.2* |
|
Consent
of Bryan Cave Leighton Paisner LLP (included in Exhibit 5.1). |
|
|
|
24.1* |
|
Power of Attorney |
|
|
|
107* |
|
Filing
Fee Table |
# | This
filing excludes certain schedules and exhibits pursuant to Item 601(a)(5) of Regulation S-K,
which the registrant agrees to furnish supplementally to the Securities and Exchange Commission
upon request; provided, however, that the registrant may request confidential treatment for
any schedules or exhibits so furnished. |
† | As
permitted by Regulation S-K, Item 601(b)(2)(ii) of the Securities Exchange Act of 1934, as
amended, certain confidential portions of this exhibit have been redacted from the publicly
filed document. |
Item
17. Undertakings.
(a)
The undersigned registrant hereby undertakes:
|
(1) |
To
file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement: |
|
(i) |
To
include any prospectus required by Section 10(a)(3) of the Securities Act of 1933; |
|
(ii) |
To
reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent
post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set
forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if
the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end
of the estimated maximum offering range may be reflected in the form of prospectus filed with the SEC pursuant to Rule 424(b) if,
in the aggregate, the changes in volume and price represent no more than 20 percent change in the maximum aggregate offering price
set forth in the “Calculation of Registration Fee” table in the effective registration statement; and |
|
(iii) |
To
include any material information with respect to the plan of distribution not previously disclosed in the registration statement
or any material change to such information in the registration statement. |
provided
however, that paragraphs (a)(1)(i), (a)(1)(ii), and (a)(1)(iii) of this section do not apply if the registration statement is on
Form S-3 and the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed
with or furnished to the SEC by the registrant pursuant to Section 13 or Section 15(d) of the Exchange Act that are incorporated by reference
in the registration statement, or, as to a registration statement on Form S-3, is contained in a form of prospectus filed pursuant to
Rule 424(b) that is part of the registration statement.
|
(2) |
That,
for the purpose of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be a
new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be
deemed to be the initial bona fide offering thereof. |
|
|
|
|
(3) |
To
remove from registration by means of a post-effective amendment any of the securities being registered that remain unsold at the
termination of the offering. |
|
|
|
|
(4) |
That,
for the purposes of determining liability under the Securities Act to any purchaser: |
If
the registrant is subject to Rule 430C, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to
an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall
be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however,
that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated
or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as
to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration
statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first
use.
|
(5) |
Insofar
as indemnification for liabilities arising under the Securities Act, as amended, may be permitted to directors, officers and controlling
persons of the undersigned registrant according the foregoing provisions, or otherwise, the undersigned registrant has been advised
that in the opinion of the SEC such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable.
In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred
or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding)
is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will,
unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction
the question whether such indemnification by it is against public policy as expressed in the Securities Act, as amended, and will
be governed by the final adjudication of such issue. |
(b) |
The
undersigned registrant hereby undertakes that, for purposes of determining any liability under the Securities Act, each filing of
the registrant’s annual report pursuant to Section 13(a) or Section 15(d) of the Exchange Act (and, where applicable, each
filing of an employee benefit plan’s annual report pursuant to Section 15(d) of the Exchange Act) that is incorporated by reference
in the registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and
the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. |
SIGNATURES
Pursuant
to the requirements of the Securities Act of 1933, the Registrant has duly caused this Registration Statement to be signed on its behalf
by the undersigned, thereunto duly authorized, in the City of St. Louis, State of Missouri, on August 23, 2024.
|
STEREOTAXIS,
INC. |
|
|
|
|
By: |
/s/
David L. Fischel |
|
|
David
L. Fischel |
|
|
Chairman
and Chief Executive Officer |
Pursuant
to the requirements of the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities
indicated and on the dates indicated.
Signature |
|
Title(s) |
|
Date |
|
|
|
|
|
|
|
|
|
|
/s/
David L. Fischel |
|
Chairman
and Chief Executive Officer |
|
August
23, 2024 |
David
L. Fischel |
|
(principal
executive officer) |
|
|
|
|
|
|
|
/s/
Kimberly R. Peery |
|
Chief
Financial Officer |
|
August
23, 2024 |
Kimberly
R. Peery |
|
(principal
financial officer and |
|
|
|
|
principal
accounting officer) |
|
|
|
|
|
|
|
* |
|
Director |
|
August
23, 2024 |
David
W. Benfer |
|
|
|
|
|
|
|
|
|
* |
|
Director |
|
August
23, 2024 |
Myriam
Curet |
|
|
|
|
|
|
|
|
|
* |
|
Director |
|
August
23, 2024 |
Nathan
Fischel |
|
|
|
|
|
|
|
|
|
* |
|
Director |
|
August
23, 2024 |
Ross
B. Levin |
|
|
|
|
|
|
|
|
|
* |
|
Director |
|
August
23, 2024 |
Arun
S. Menawat |
|
|
|
|
|
|
|
|
|
* |
|
Director |
|
August
23, 2024 |
Nachum
“Homi” Shamir |
|
|
|
|
*By |
/s/
Laura Spencer Garth |
|
|
Laura
Spencer Garth, |
|
|
Attorney-in-fact |
|
Exhibit
5.1
August
23, 2024 |
![](https://www.sec.gov/Archives/edgar/data/1289340/000149315224033759/ex5-1_001.jpg) |
Stereotaxis,
Inc.
710
North Tucker Boulevard, Suite 110
St.
Louis, Missouri 63101
Re: |
Stereotaxis,
Inc.
Registration
Statement on Form S-3 |
Ladies
and Gentlemen:
We
have acted as special counsel to Stereotaxis, Inc., a Delaware corporation (the “Company”), in connection with the offer
and resale of an aggregate of up to 6,100,000 shares (the “Shares”) of the Company’s common stock, par value $0.001
per share (the “Common Stock”), pursuant to the Company’s Registration Statement on Form S-3 (the “Registration
Statement”) filed by the Company with the Securities and Exchange Commission (the “SEC”) under the Securities Act of
1933, as amended (the “Securities Act”), on the date hereof, on behalf of the selling stockholder named therein. The Shares
consist of (i) 1,486,620 Shares (the “Closing Shares”) issued at the closing of the transactions contemplated by the Share
Purchase Agreement dated as of May 11, 2024 (as amended, the “Share Purchase Agreement”), by and among the Company, Access
Point Technologies EP, Inc., and APT Holding Company, Inc. (the “Selling Stockholder”); and (ii) an estimated 4,613,380 additional
Shares (the “Earnout Shares”) issuable to the Selling Stockholder if certain revenue milestones and regulatory approvals
are achieved within the five-year period following the date of the Share Purchase Agreement, as described therein.
In
connection herewith, we have examined:
(1) |
the
Registration Statement; |
(2) |
the
Share Purchase Agreement; |
(3) |
the
Amended and Restated Certificate of Incorporation of the Company, as amended (the “Charter”); and |
(4) |
the
Amended and Restated Bylaws of the Company, as amended. |
We
have also examined originals or copies, certified or otherwise identified to our satisfaction, of such other corporate records, agreements
and instruments of the Company, statements and certificates of public officials and officers of the Company, and such other documents,
records and instruments, and we have made such legal and factual inquiries, as we have deemed necessary or appropriate as a basis for
us to render the opinions hereinafter expressed. In our examination of the foregoing, we have assumed the genuineness of all signatures,
the legal competence and capacity of natural persons, the authenticity of documents submitted to us as originals and the conformity with
authentic original documents of all documents submitted to us as copies or by facsimile or other means of electronic transmission, or
which we obtained from the Securities and Exchange Commission’s (“SEC”) Electronic Data Gathering, Analysis and Retrieval
system (“Edgar”) or other sites maintained by a court or governmental authority or regulatory body and the authenticity of
the originals of such latter documents. If any documents we examined in printed, word processed or similar form have been filed with
the SEC on Edgar or such court or governmental authority or regulatory body, we have assumed that the document so filed is identical
to the document we examined except for formatting changes. When relevant facts were not independently established, we have relied without
independent investigation as to matters of fact upon statements of governmental officials and upon representations made in or pursuant
to the certificates and statements of appropriate representatives of the Company.
In
connection herewith, we have assumed that, other than with respect to the Company, all of the documents referred to in this opinion letter
have been duly authorized by, have been duly executed and delivered by, and constitute the valid, binding and enforceable obligations
of, all of the parties to such documents, all of the signatories to such documents have been duly authorized and all such parties are
duly organized and validly existing and have the power and authority (corporate or other) to execute, deliver and perform such documents.
Based
upon the foregoing and in reliance thereon, and subject to the assumptions, comments, qualifications, limitations and exceptions set
forth herein, we are of the opinion that (i) the Closing Shares have been duly authorized and are validly issued, fully paid and non-assessable
and (ii) the Earnout Shares (a) have been duly authorized and (b) when issued and delivered in accordance with the Share Purchase Agreement,
and assuming that upon issuance thereof, such Earnout Shares together with all shares of Common Stock previously issued or reserved for
issuance and not duly and lawfully retired do not exceed the number of shares authorized for issuance pursuant to the Charter at such
time, will be validly issued, fully paid and non-assessable.
This
opinion is not rendered with respect to any laws other than the General Corporation Law of the State of Delaware. The opinions set forth
herein are made as of the date hereof and are subject to, and may be limited by, future changes in the factual matters set forth herein,
and we undertake no duty to advise you of the same. The opinions expressed herein are based upon the law in effect (and published or
otherwise generally available) on the date hereof, and we assume no obligation to revise or supplement these opinions should such law
be changed by legislative action, judicial decision or otherwise. In rendering our opinions, we have not considered, and hereby disclaim
any opinion as to, the application or impact of any laws, cases, decisions, rules or regulations of any other jurisdiction, court or
administrative agency.
This
opinion is being delivered by us in connection with the filing of the Registration Statement with the SEC. We do not render any opinions
except as set forth above. We hereby consent to the filing of this opinion as Exhibit 5.1 to the Registration Statement and to the use
of our name under the caption “Legal Matters” in the prospectus which forms part of the Registration Statement. We
also consent to your filing copies of this opinion as an exhibit to the Registration Statement with such agencies of such states as you
deem necessary in the course of complying with the laws of such states regarding the offering and sale of the securities addressed herein.
In giving such consent, we do not thereby concede that we are within the category of persons whose consent is required under Section
7 of the Securities Act or the rules and regulations of the SEC promulgated thereunder.
Very
truly yours, |
|
|
|
/s/
Bryan Cave Leighton Paisner LLP |
|
|
|
Bryan
Cave Leighton Paisner LLP |
|
Exhibit
23.1
Consent
of Independent Registered Public Accounting Firm
We
consent to the reference to our firm under the caption “Experts” in the Registration Statement (Form S-3) and related
Prospectus of Stereotaxis, Inc. for the registration of up to 6,100,000 shares of common stock, and to the incorporation by reference
therein of our report dated March 8, 2024 with respect to the financial statements of Stereotaxis, Inc. included in its Annual Report
(Form 10-K) for the year ended December 31, 2023 and the financial statement schedule of Stereotaxis, Inc. included therein, filed with
the Securities and Exchange Commission.
St.
Louis, Missouri
August
23, 2024
Exhibit
24.1
POWER
OF ATTORNEY
KNOW
ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below hereby constitutes and appoints David L. Fischel, Kimberly
R. Peery and Laura Spencer Garth, and each of them (with full power of each to act alone), severally, as his or her true and lawful attorneys-in-fact
and agents, with full power of substitution and resubstitution, for him or her and to execute in his or her name, place and stead (individually
and in any capacity stated below) a registration statement on Form S-3 (the “Registration Statement”) covering the registration
of certain shares of common stock, par value $0.001, of Stereotaxis, Inc. (the “Company”) for resale by or on behalf of a
certain selling stockholder pursuant to registration rights granted under that certain Share Purchase Agreement, dated May 11, 2024,
as amended, by and between the Company, APT Holding Company, Inc., and Access Point Technologies EP, Inc., and any and all pre-effective
and post-effective amendments to the Registration Statement), and any additional registration statement filed pursuant to Rule 462(b)
under the Securities Act of 1933, as amended, and all documents and instruments necessary or advisable in connection therewith, and to
file the same, with exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission (or any
other governmental regulatory authority), each of said attorneys-in-fact and agents to have power to act with or without the others and
to have full power and authority to do and to perform in the name and on behalf of each of the undersigned every act whatsoever necessary
or advisable to be done in the premises as fully and to all intents and purposes as any of the undersigned might or could do in person,
hereby ratifying and confirming all that said attorneys-in-fact and agents and/or any of them, or their substitute or substitutes, may
lawfully do or cause to be done by virtue hereof.
Dated:
August 23, 2024
Signature |
|
Title(s) |
|
|
|
/s/ David L. Fischel |
|
Chairman and Chief Executive Officer |
David L. Fischel |
|
(principal executive officer) |
|
|
|
/s/ Kimberly R. Peery |
|
Chief Financial Officer |
Kimberly R. Peery |
|
(principal financial officer and principal accounting officer) |
|
|
|
/s/ David W. Benfer |
|
Director |
David W. Benfer |
|
|
|
|
|
/s/ Myriam Curet |
|
Director |
Myriam Curet |
|
|
|
|
|
/s/ Nathan Fischel |
|
Director |
Nathan Fischel |
|
|
|
|
|
/s/ Ross B. Levin |
|
Director |
Ross B. Levin |
|
|
|
|
|
/s/ Arun S. Menawat |
|
Director |
Arun S. Menawat |
|
|
|
|
|
/s/ Nachum Shamir |
|
Director |
Nachum “Homi” Shamir |
|
|
Exhibit
107
CALCULATION
OF REGISTRATION FEE
Security type | |
Security class title | |
Fee calculation rule | |
Amount registered | |
Proposed maximum offering price per share | | |
Maximum aggregate offering price | | |
Amount of registration fee | |
Equity | |
Common Stock, $0.001 par value | |
457(c) | |
6,100,000 shares (1)(2) | |
$ | 1.90 | (3) | |
$ | 11,590,000 | (3) | |
| 1,711 | |
(1) | Pursuant
to Rule 416(a) of the Securities Act of 1933, as amended (the “Securities Act”),
this Registration Statement shall also cover an indeterminate number of additional shares
of the Registrant’s common stock, par value $0.001 per share (the “Common Stock”),
that becomes issuable with respect to the shares being registered hereunder as a result of
stock splits, stock dividends, recapitalizations or similar transactions. |
(2) | The
number of shares of Common Stock being registered hereunder is comprised of (i) 1,486,620
shares of Common Stock (the “Closing Shares”) issued to the selling stockholder
on July 31, 2024 pursuant to the Share Purchase Agreement dated as of May 11, 2024, by and
among the Registrant, Access Point Technologies EP, Inc., and APT Holding Company, Inc. (as
amended, the “Share Purchase Agreement”) and (ii) 4,613,380 additional shares
of Common Stock (the “Earnout Shares”) which may be issued to the selling stockholder
assuming (a) the achievement of certain performance milestones set forth in the Share Purchase
Agreement, and (b) the actual average closing price of the Common Stock calculated pursuant
to a formula near the time such milestones are achieved. The Earnout Shares have not
been earned and are not currently outstanding. The actual number of Earnout Shares issued
to the selling stockholders could be materially greater or less than 4,613,380 shares of
common stock depending whether and to what extent the future revenue and regulatory approval
milestones are met and/or the actual average closing price of our common stock at the time
such milestones are achieved. |
(3) | Estimated
solely for the purpose of calculating the registration fee pursuant to Rule 457(c) under
the Securities Act and based upon the average of the high and low prices of the Company’s
Common Stock as reported on the NYSE American on August 19, 2024. |
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