Digirad Corporation (Nasdaq: DRAD; DRADP) (“Digirad” or the
“Company”), a diversified holding company with three operating
divisions: healthcare, building and construction, and real estate
and investments, today announced the closing of its previously
announced underwritten public offering of 2,225,000 shares of its
common stock and warrants to purchase up to 1,112,500 shares of the
Company’s common stock (the “Common Warrants”). Each share of
common stock was sold together with one common warrant to purchase
0.5 shares of common stock at a price of $2.25 per share and common
warrant. Gross proceeds, before deducting underwriting
discounts and offering expenses, were approximately $5.0
million. In addition, Digirad granted to Maxim Group LLC, a
45-day option to purchase up to an additional 225,000 shares of
common stock and/or 225,000 Common Warrants to purchase up to
112,500 shares of common stock, at the public offering price less
discounts and commissions, of which Maxim Group LLC has partially
exercised its option to purchase the 225,000 over-allotment Common
Warrants.
The Common Warrants are immediately exercisable
at a price of $2.25 per share of common stock and will expire five
years from the date of issuance. The shares of common stock
and the accompanying Common Warrants were sold together in the
offering but were issued separately.
Maxim Group LLC acted as sole book-running
manager for the offering.
The offering was conducted pursuant to the
Company's registration statement (the “Registration Statement”) on
Form S-1 (File No. 333-237928) previously filed with, and
subsequently declared effective by, the Securities and Exchange
Commission ("SEC"). A prospectus relating to the offering has been
filed with the SEC and is available on the SEC's website at
http://www.sec.gov. Electronic copies of the prospectus
relating to this offering may be obtained from Maxim Group LLC, 405
Lexington Avenue, 2nd Floor, New York, NY 10174, at (212)
895-3745.
This press release shall not constitute an offer
to sell or the solicitation of an offer to buy the securities
described in this press release, nor shall there be any sale of
such securities in any state or other jurisdiction in which such
offer, solicitation or sale would be unlawful prior to the
registration or qualification under the securities laws of any such
state or other jurisdiction.
About Digirad Corporation
Digirad Corporation is a diversified holding
company with three operating divisions: Healthcare, Building &
Construction, and Real Estate & Investments.
Healthcare Division (Digirad
Health)
Digirad Health designs, manufactures, and
distributes diagnostic medical imaging products. Digirad
Health operates in three businesses: Diagnostic
Services, Mobile Healthcare, and Diagnostic Imaging. The
Diagnostic Services business offers imaging and monitoring services
to healthcare providers as an alternative to purchasing the
equipment or outsourcing the procedure. The Mobile
Healthcare business provides contract diagnostic imaging,
including computerized tomography (“CT”), magnetic resonance
imaging (“MRI”), positron emission tomography (“PET”), PET/CT, and
nuclear medicine and healthcare expertise through a convenient
mobile service. The Diagnostic Imaging business develops, sells,
and maintains solid-state gamma cameras.
Building & Construction Division
(ATRM)
ATRM Holdings, Inc. (“ATRM”) manufactures
modular housing units for commercial and residential applications.
ATRM operates in two businesses: (i) modular building manufacturing
and (ii) structural wall panel and wood foundation manufacturing,
including building supply retail operations. The modular building
manufacturing business is operated by KBS Builders, Inc. (“KBS”),
the structural wall panel and wood foundation manufacturing segment
is operated by EdgeBuilder, Inc. (“EdgeBuilder”), and the retail
building supplies are sold through Glenbrook Building Supply, Inc.
(“Glenbrook”). KBS, EdgeBuilder and Glenbrook are wholly-owned
subsidiaries of ATRM, which is a wholly-owned subsidiary of
Digirad.
Real Estate & Investments
Division
This business division manages the Company’s
real estate assets and investments.
Forward-Looking Statements Disclaimer
Statement
“Safe Harbor” Statement under the Private
Securities Litigation Reform Act of 1995: This release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. All statements in this
release that are not statements of historical fact are hereby
identified as “forward-looking statements” for the purpose of the
safe harbor provided by Section 27A of the Securities Act of 1933,
as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended. Forward-looking Statements include, without limitation,
statements regarding (i) the plans and objectives of management for
future operations, including plans or objectives relating to
acquisitions and related integration, development of commercially
viable products, novel technologies, and modern applicable
services, (ii) projections of income (including income/loss),
EBITDA, earnings (including earnings/loss) per share, free cash
flow (FCF), capital expenditures, cost reductions, capital
structure or other financial items, (iii) the future financial
performance of Digirad Corporation or acquisition targets and (iv)
the assumptions underlying or relating to any statement described
above. Moreover, forward-looking statements necessarily involve
assumptions on the Company’s part. These forward-looking
statements generally are identified by the words “believe”,
“expect”, “anticipate”, “estimate”, “project”, “intend”, “plan”,
“should”, “may”, “will”, “would”, “will be”, “will continue” or
similar expressions. Such forward-looking statements are not
meant to predict or guarantee actual results, performance, events
or circumstances and may not be realized because they are based
upon the Company's current projections, plans, objectives, beliefs,
expectations, estimates and assumptions and are subject to a number
of risks and uncertainties and other influences, many of which the
Company has no control over. Actual results and the timing of
certain events and circumstances may differ materially from those
described above as a result of these risks and uncertainties.
Factors that may influence or contribute to the inaccuracy of
forward-looking statements or cause actual results to differ
materially from expected or desired results may include, without
limitation, the substantial amount of debt of the Company and the
Company’s ability to repay or refinance it or incur additional debt
in the future; the Company’s need for a significant amount of cash
to service and repay the debt and to pay dividends on the Company’s
preferred stock; the restrictions contained in the debt agreements
that limit the discretion of management in operating the business;
the length of time associated with servicing customers; losses of
significant contracts; disruptions in the relationship with third
party vendors; accounts receivable turnover; insufficient cash
flows and resulting in liquidity; the Company's inability to expand
the Company's business; unfavorable changes in the extensive
governmental legislation and regulations governing healthcare
providers and the provision of healthcare services and the
competitive impact of such changes (including unfavorable changes
to reimbursement policies); high costs of regulatory compliance;
the liability and compliance costs regarding environmental
regulations; the underlying condition of the technology support
industry; the lack of product diversification; development and
introduction of new technologies and intense competition in the
healthcare industry; existing or increased competition; risks to
the price and volatility of the Company’s common stock and
preferred stock; stock volatility and in liquidity; risks to
preferred stockholders of not receiving dividends and risks to the
Company’s ability to pursue growth opportunities if the Company
continues to pay dividends according to the terms of the Company’s
preferred stock; the Company’s ability to execute on its business
strategy (including any cost reduction plans); the Company’s
failure to realize expected benefits of restructuring and
cost-cutting actions; the Company’s ability to preserve and
monetize its net operating losses; risks associated with the
Company’s possible pursuit of acquisitions; the Company’s ability
to consummate successful acquisitions and execute related
integration, including to successfully integrate ATRM’s operations
and realize the synergies from the acquisition of ATRM, as well as
factors related to the Company’s business (including ATRM)
including economic and financial market conditions generally and
economic conditions in the Company’s markets; failure to keep pace
with evolving technologies and difficulties integrating
technologies; system failures; losses of key management personnel
and the inability to attract and retain highly qualified management
and personnel in the future; and the continued demand for and
market acceptance of the Company’s services. For a detailed
discussion of cautionary statements and risks that may affect the
Company’s future results of operations and financial results,
please refer to the Company’s filings with the Securities and
Exchange Commission, including, but not limited to, the risk
factors in the Company’s most recent Annual Report on Form 10-K and
Quarterly Reports on Form 10-Q. This release reflects management’s
views as of the date presented.
All forward-looking statements are necessarily
only estimates of future results, and there can be no assurance
that actual results will not differ materially from expectations,
and, therefore, you are cautioned not to place undue reliance on
such statements. Further, any forward-looking statement speaks only
as of the date on which it is made, and we undertake no obligation
to update any forward-looking statement to reflect events or
circumstances after the date on which the statement is made or to
reflect the occurrence of unanticipated events.
For more information contact: |
Digirad Corporation |
The
Equity Group |
Jeffrey E. Eberwein |
Lena Cati |
Chairman of the Board |
The Equity Group |
203-489-9501 |
212-836-9611 |
ir@digirad.com |
lcati@equityny.com |
Digirad (NASDAQ:DRAD)
Historical Stock Chart
From Apr 2024 to May 2024
Digirad (NASDAQ:DRAD)
Historical Stock Chart
From May 2023 to May 2024