Sign In  |  Register  |  About Los Altos  |  Contact Us

Los Altos, CA
September 01, 2020 1:26pm
7-Day Forecast | Traffic
  • Search Hotels in Los Altos

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

ProSomnus Sleep Technologies Takes Strategic Action to Position Company for Long-Term Success

Announces Plan for $20 million in Aggregate New Financing to Support Daily Operations, Restructuring, Strategic Initiatives, and Advocacy

Company Enters into Voluntary Chapter 11 Restructuring Process Which Will Take Company Private, Reduce Debt and Enable Execution of Key Initiatives

Minimal Expected Operational Impact to Business, Company Wil Continue Serving Customers and Delivering Products

PLEASANTON, Calif., May 08, 2024 (GLOBE NEWSWIRE) -- ProSomnus, Inc. (the “Company”), the leading non-CPAP Obstructive Sleep Apnea (OSA) therapy, announced it has initiated a voluntary restructuring process under Chapter 11 of the U.S. Bankruptcy Code to reorganize and strengthen its capital structure going forward, improve financial flexibility and better position the company for long-term success. In connection with this process, the Company has secured the support of multiple existing key investors and lenders under a plan that is designed to deliver an aggregate of approximately $20 million of new capital into the Company. Such Capital will support ongoing operations and the development of strategic initiatives including the company’s next generation sensor device.

In connection with this restructuring, ProSomnus intends to retain the ability to fully maintain ongoing operations, including the payment of the Company’s employees, customers, and vendors in the ordinary course of business during and after the restructuring.

“The voluntary restructuring announced today will enable us to move ahead as a stronger company,” said Len Liptak, Chief Executive Officer for ProSomnus Sleep Technologies. “This very difficult decision was reached after conducting several extensive processes to identify alternatives. Reestablishing a healthy financial foundation for our company, with the support of our lenders, we expect to leave the process with more cash, less debt, less expense, and more time to focus on devices, customers and patients. This renewed foundation will place ProSomnus in a position to realize our mission and develop our next generation sensor device technology. I am grateful for the support of our customers, suppliers, and employees as we work through this process.”

Minimal Expected Operational Impact to the Business
Importantly, the terms of this financial restructuring enable the Company to maintain normal business operations for customers and suppliers during and after this restructuring process. The Company expects customers to continue experiencing its best in class, rapid, turnaround times, predictable on-time order fulfillment, and exceptional device quality and performance. ProSomnus expects to continue purchasing supplies from vendors commensurate with demand for our devices.

Improvements to Financial Condition
The restructuring plan, which is expected to deliver an aggregate of $20 million of new capital, is being led by SMC Holdings II, LP, CETUS Capital VI, LP, Destinations Global Fixed Income Opportunities Fund, Cedarview Opportunities Masters Fund, LP and Riverpark Strategic Income Fund, each existing lenders to and investors in the Company, each of which has also consented to convert the Company’s current debt owed into equity upon exit from the restructuring. Further, the amount of existing senior secured debt will be reduced, and amortization of scheduled repayments will be deferred. Under the restructuring plan the Company expects to reduce its debt by approximately 60%.  

Amounts due to employees, trade creditors, vendors and customers are not expected to be impacted by the restructuring. The completion of the restructuring plan will result in the Company becoming a private company, thereby eliminating $4 million to $6 million of annual recurring public company costs its public company obligations. In aggregate, the reduced public company expenses, along with the capital infusion, is expected to allow the Company to direct greater resources and capital to support and grow operations as it continues to offer patients and customers a viable alternative to current sleep apnea treatments.

Additional Information
Filings and other information related to the proceedings are available on a separate website administrated by the Company’s claims agent, at www.kccllc.net/prosomnus.

About ProSomnus
ProSomnus is the leading non-CPAP therapy for the treatment of Obstructive Sleep Apnea, a serious medical disease affecting over 1 billion people worldwide, that is associated with comorbidities including heart failure, stroke, hypertension, morbid obesity, and type 2 diabetes. ProSomnus intraoral medical devices are engineered to precisely track the treatment plan and anatomy for each patient. Non-invasive, patient preferred and easy to use, ProSomnus devices have demonstrated excellent efficacy, safety, adherence, and overall outcomes in a growing body of clinical investigations. ProSomnus precision intraoral devices are FDA-cleared, patented, and covered by commercial medical insurance, Medicare, TRICARE and many Government-sponsored healthcare plans around the world, representing over 200 million covered lives. To learn more, visit www.ProSomnus.com.

Forward-Looking Statements
This Press Release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Forward-looking statements generally relate to future events. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these words or other similar terms or expressions that concern the proposed transaction and the Company’s expectations, strategy, plans or intentions regarding it. Forward-looking statements in this press release include, but are not limited to, statements regarding the Company’s continued operation of the business; the Company’s expectations regarding the anticipated restructuring; the Company’s expectation that the regarding the amounts, terms, and timing of the restructuring and the sufficiency of liquidity to complete the restructuring.

All forward-looking statements included in this press release are made as of the date of this release, based on information currently available to the Company, deal with future events, and are subject to various risks and uncertainties, including the risk that the Company’s ability to fund its planned operations for the next twelve months and its ability to continue as a going concern; the adverse impact of the restructuring on the Company’s business, financial condition, and results of operations; the Company’s ability to successfully consummate the restructuring and emerge from the restructuring process, including by entering into and ultimately completing the restructuring; the Company’s ability to improve its liquidity and long-term capital structure and to address its debt service obligations through the restructuring; the Company’s ability to make the required payments under the agreements governing its current debt obligations; the Company’s ability to maintain relationships with suppliers, customers, employees and other third parties as a result of the restructuring; the effects of the restructuring on the Company and the interests of various constituents; risks and uncertainties associated with the restructuring, including the Company’s ability to receive approvals for the various elements of the restructuring, obtain confirmation of the restructuring plan and successfully consummate the restructuring; and the Company’s ability to receive any required approvals of the restructuring plan and the responses of its securityholders and other stakeholders, including those party to any potential financing, among other risks and uncertainties, and actual results could differ materially from those anticipated in those forward-looking statements. The risks and uncertainties that may cause actual results to differ materially from the Company’s current expectations are more fully described in the Company’s Annual Report on Form 10-K filed with the SEC on March 27, 2024 and the amendment thereto filed on April 29, 2024, any subsequently filed Quarterly Reports on Form 10-Q, and its other reports, each as filed with the SEC. Except as required by law, the Company assumes no obligation to update any such forward-looking statement after the date of this Current Report or to conform these forward-looking statements to actual results.

Investor Contact
Mike Cavanaugh
ICR Westwicke
Phone: +1.617.877.9641
Email: Mike.Cavanaugh@westwicke.com

Media Contact
Heather Whalen
ProSomnus
Phone: +1.925.360.2990
Email: HWhalen@ProSomnus.com


Primary Logo

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 LosAltos.com & California Media Partners, LLC. All rights reserved.