Aesthetics: Solta prices $15M offering as acquisition charges, losses swell in 2nd quarter
Solta Medical prices a $15 million public offering to raise funds for general corporate purposes after the company incurs substantial charges tied to the $15 million acquisition of Liposonix.
Solta Medical (NSDQ:SLTM) released pricing on a $15 million public offering intended to raise funds for general corporate purposes after the aesthetics devices maker incurred substantial charges during its 2nd quarter.
Solta's Q2 losses swelled more than 12600% on a $26 million "fair value reassessment" for fat-reduction device maker Liposonix, which the company acquired for $15 million plus pay-outs late last year. The new assessment doubles the previous consideration and brings the new total to $58.5 million in payments over the next 7 years.
The increase is "due primarily to our estimate of higher achievement in specified net sales and adjusted gross profit targets," Solta noted in its latest earnings report.