Senseonics Announces Pricing of $50 Million Public Offering of Common Stock and Concurrent Private Placement

Rhea-AI Summary

Senseonics Holdings (NYSE: SENS) has announced the pricing of a $50 million public offering of common stock, consisting of 100,000,000 shares priced at $0.50 per share. The company also granted underwriters a 30-day option to purchase up to an additional 15,000,000 shares. In a concurrent private placement, Abbott Laboratories will purchase shares at $0.50 per share, representing 4.99% of Senseonics' post-offering outstanding common stock.

The offering is expected to close on May 19, 2025, with TD Cowen and Barclays acting as joint book-running managers. The net proceeds will be used to fund the ongoing launch of Eversense 365 and pipeline product development, along with working capital and general corporate purposes.

Positive

• Strategic partnership with Abbott Laboratories through private placement investment
• Secured significant funding of $50 million for product development and launch
• Successful shelf registration and pricing of offering with major underwriters

Negative

• Significant shareholder dilution with 100 million new shares being issued
• Low offering price of $0.50 per share indicates potential market weakness
• Additional dilution possible through 15 million share underwriter option

Insights

Financial Analyst

Senseonics is raising $50M through heavily dilutive stock offering at $0.50/share, indicating significant capital needs despite Abbott's strategic investment.

Senseonics' $50 million public offering represents a substantial capital raise for the CGM company, but comes with significant shareholder dilution through 100 million new shares priced at just $0.50 per share. This pricing suggests challenging market conditions for the company and likely reflects investors' concerns about its path to profitability in the competitive CGM space.

The concurrent private placement with Abbott Laboratories is particularly noteworthy, as this strategic investment maintains Abbott's ownership at 4.99% post-offering. While Abbott's continued involvement signals some confidence in Senseonics' technology, the participation in this dilutive round rather than a premium investment suggests measured support rather than aggressive backing.

The company explicitly states funds will support the Eversense 365 launch and pipeline development. This capital raise indicates Senseonics is operating from a position of financial necessity rather than opportunistic growth funding. The offering structure - with underwriters granted options for an additional 15 million shares - suggests the company maximized its fundraising capacity under current market conditions.

For context, this offering will significantly expand Senseonics' outstanding share count, potentially pressuring future per-share metrics. The $0.50 share price indicates substantial valuation compression since the company's stronger market position in previous years, reflecting investors' reassessment of its competitive position in the diabetes management market.

GERMANTOWN, Md., May 15, 2025 (GLOBE NEWSWIRE) -- Senseonics Holdings, Inc. (NYSE American: SENS), a medical technology company focused on the development and manufacturing of long-term, implantable continuous glucose monitoring (CGM) systems for people with diabetes, today announced the pricing of an underwritten public offering of 100,000,000 shares of common stock at a price to the public of $0.50 per share of common stock. The gross proceeds to Senseonics from the offering, before deducting underwriting discounts and commissions and estimated offering expenses, are expected to be $50,000,000. In addition, Senseonics granted the underwriters a 30-day option to purchase up to an additional 15,000,000 shares of common stock at the public offering price, less underwriting discounts and commissions. The offering is expected to close on May 19, 2025, subject to satisfaction of customary closing conditions.

TD Cowen and Barclays are acting as joint book-running managers and RBC Capital Markets and Lake Street are acting as bookrunners for the proposed offering.

The proposed offering is being made pursuant to a “shelf” registration statement on Form S-3, including a base prospectus (File No. 333-273882) that was originally filed with the Securities and Exchange Commission (the “SEC”) on August 10, 2023 and became effective on September 12, 2023. A preliminary prospectus supplement and accompanying prospectus relating to the proposed offering were filed with the SEC and are available on the SEC’s website at www.sec.gov. A final prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC and will be available for free on the SEC’s website located at http://www.sec.gov. Copies of the final prospectus supplement and accompanying prospectus may be obtained, when available, by contacting TD Securities (USA) LLC, 1 Vanderbilt Avenue, New York, NY 10017, by telephone at (833) 297-2926 or by email at TD.ECM_Prospectus@tdsecurities.com; or Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at 1-888-603-5847, or by email at barclaysprospectus@broadridge.com.

Pursuant to the terms of a Securities Purchase Agreement with Abbott Laboratories (“Abbott”) dated May 15, 2025, Abbott will purchase shares of Senseonics’ common stock in a separate private placement at $0.50 per share (“Concurrent Private Placement”) representing 4.99% of Senseonics’ outstanding common stock post-offering. The Concurrent Private Placement is expected to close on May 21, 2025, subject to the closing of the public offering and other customary closing conditions.

Senseonics intends to use the net proceeds from the public offering and the Concurrent Private Placement to fund the ongoing launch of Eversense 365 and continued development of pipeline products, as well as for working capital and general corporate purposes.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

About Senseonics

Senseonics Holdings, Inc. ("Senseonics") is a medical technology company focused on the development and manufacturing of glucose monitoring products designed to transform lives in the global diabetes community with differentiated, long-term implantable glucose management technology. Senseonics' CGM systems Eversense® 365 and Eversense® E3 include a small sensor inserted completely under the skin that communicates with a smart transmitter worn over the sensor. The glucose data are automatically sent every 5 minutes to a mobile app on the user's smartphone.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995, including without limitation statements regarding, among other things, Senseonics’ expectations about the closing date of the offering and the anticipated use of proceeds from the offering and the Concurrent Private Placement. The words “expects,” “potential,” “may,” “will,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results or events could differ materially from the plans, intentions and expectations disclosed in these forward-looking statements as a result of various important factors, including risks relating to Senseonics’ inability, or the inability of underwriters, to satisfy the conditions to closing for the offering; failure to satisfy the closing conditions of the Concurrent Private Placement; uncertainties relating to the current economic environment, market and other conditions; and other risks and uncertainties that are described in the Risk Factors section of Senseonics’ Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on March 3, 2025, Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, filed with the SEC on May 8, 2025, and other filings Senseonics makes with the SEC from time to time. The events and circumstances discussed in such forward-looking statements may not occur, and Senseonics’ actual results could differ materially and adversely from those anticipated or implied thereby. Any forward-looking statements contained in this press release speak only as of the date hereof, and Senseonics expressly disclaims any obligation to update any forward-looking statements, whether because of new information, future events or otherwise.

INVESTOR CONTACT:
Jeremy Feffer
LifeSci Advisors
investors@senseonics.com

FAQ

What is the size and price of Senseonics (SENS) stock offering in May 2025?

Senseonics announced a $50 million public offering of 100,000,000 shares priced at $0.50 per share, with an additional 30-day option for underwriters to purchase up to 15,000,000 more shares.

How much is Abbott Laboratories investing in Senseonics through the private placement?

Abbott will purchase shares representing 4.99% of Senseonics' post-offering outstanding common stock at $0.50 per share through a concurrent private placement.

What will Senseonics use the proceeds from the stock offering for?

The proceeds will fund the ongoing launch of Eversense 365, continued development of pipeline products, working capital, and general corporate purposes.

When will the Senseonics (SENS) public offering close?

The public offering is expected to close on May 19, 2025, subject to customary closing conditions.

Who are the underwriters for Senseonics' May 2025 public offering?

TD Cowen and Barclays are acting as joint book-running managers, while RBC Capital Markets and Lake Street are acting as bookrunners for the offering.