ProSomnus Inc has raised $10 million in a convertible preferred equity offering led by existing investors Spring Mountain Capital and Cetus Capital LLC to fuel growth and improve operations.
ProSomnus’ executive chair, CEO, and chief financial officer are also participating in the financing. The new capital will be leveraged to optimize the company’s core business operations and support its strategic growth initiatives, as the company works to achieve cash flow breakeven.
“The completion of this financing fortifies our balance sheet as we continue our mission to make precision oral appliance therapy the preferred first-line treatment for obstructive sleep apnea,” says Len Liptak, co-founder and CEO, in a release “As we discussed on our second-quarter call, the ProSomnus team is executing at a high level, having reported 48% revenue growth in the first half of 2023 and additional scientific data demonstrating the effectiveness of ProSomnus precision devices.
“We will leverage this new capital to fine-tune our operating model, as we work to reach cash flow breakeven while still delivering strong top-line growth. This financing is a key step forward, and I am more confident than ever in our ability to demonstrate the compelling efficacy and adherence of our devices compared to alternative therapies including CPAP and hypoglossal nerve stimulation.”
A description of the terms of the offering can be found in the company’s current report on form 8-K filed with the Securities and Exchange Commission.