Electromed Inc., which makes a device that helps lung disease patients breathe, expects to conduct its initial public offering in the next two weeks.
The New Prague, Minn., company plans to sell 2 million shares for $4 to $6 per share. The underwriter of the IPO will have the option to buy another 300,000 shares to cover excess demand. If all shares are sold, the company said it expects to collect as $9.7 million, after expenses and discounts.
Electromed makes the SmartVest Airway Clearance System, a device that it used to treat conditions that cause secretions to build up in the lungs. The device is worn around that chest and applies pressure, compressing the chest five to 20 times per second. The compressions mimic the action of a cough, breaking up secretions so patients can cough them out.
Electromed said it the SmartVest can be prescribed for patients with other illnesses, including cystic fibrosis, muscular dystrophy, surgical complications and chronic lung disease.
The company said it will use proceeds to add employees to its reimbursement, patient services and administrative departments; add members to its sales force; for research and development; and other purposes.
In the nine months ended March 31, the company earned $863 million, on revenue $10.7 million, compared with net income of $1.2 million, on revenue of $9.5 million, in the prior-year period. Its shares will trade under the symbol "ELMD."
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