CHF Solutions, Inc. Announces Pricing of $8.4 Million Underwritten Public Offering

EDEN PRAIRIE, Minn., Jan. 24, 2020 (GLOBE NEWSWIRE) -- CHF Solutions, Inc. (NASDAQ:CHFS) today announced the pricing of an underwritten public offering of units for gross proceeds of approximately $8.4 million prior to deducting underwriting discounts and commissions and offering expenses payable by CHF Solutions. The offering is comprised of (1) 3,755,458 Class A Units, priced at a public offering price of $0.55 per unit, with each unit consisting of one share of common stock and a warrant to purchase one share of common stock at an exercise price of $0.55 per share that expires on the fifth anniversary of the date of issuance, and (2) 11,517,269 Class B Units, priced at a public offering price of $0.55 per unit, with each unit consisting of one share of Series H convertible preferred stock, convertible into one share of common stock, and a warrant to purchase one share of common stock with an exercise price of $0.55 per share.

The conversion price of the preferred stock issued in the transaction is fixed and does not contain any variable pricing feature or any price based anti-dilutive feature. The preferred stock issued in this transaction includes a beneficial ownership blocker but has no dividend rights (except to the extent that dividends are also paid on the common stock) or liquidation preference, and, subject to limited exceptions, has no voting rights. The securities comprising the units are immediately separable and will be issued separately. The closing of the offering is expected to take place on or about January 28, 2020, subject to the satisfaction or waiver of customary closing conditions.

Ladenburg Thalmann & Co. Inc., a subsidiary of Ladenburg Thalmann Financial Services Inc. (NYSE American: LTS), is acting as sole book-running manager in connection with the offering.

A total of 3,755,458 shares of common stock, 11,517,269 shares of Series H convertible preferred stock, and warrants to purchase up to 15,272,727 shares of common stock will be issued in the offering. In addition, the Company has granted the underwriters a 45-day option to purchase up to 2,290,909 additional shares of common stock and additional warrants to purchase up to 2,290,909 shares of common stock, solely to cover over-allotments, if any, at the public offering price per share and per warrant, less the underwriting discounts and commissions.