Pulse Biosciences to redeem warrants after stock price surge
Pulse Biosciences will redeem outstanding 200% Warrants on July 13, 2026, after the stock's VWAP exceeded $22.00 for 20 consecutive days. Holders can exercise warrants at $11.00 per share until the deadline. The company has received $63.7 million from warrant redemptions to date.
*this image is generated using AI for illustrative purposes only.
Pulse Biosciences, Inc. announced it intends to deliver an irrevocable notice of redemption on or about June 10, 2026, to redeem the remaining common stock warrants issued as part of its July 3, 2024 rights offering. The company's decision follows a sustained increase in its stock price, which triggered the redemption clause outlined in the warrant agreements. This move impacts holders of the 200% Warrants, who must now decide whether to exercise their rights or face redemption at a nominal price.
The 200% Warrants may be exercised by holders until 5:00 p.m., Eastern time, on July 13, 2026, at the exercise price of $11.00 per share of common stock. Any warrants not exercised before this deadline will be redeemed by the company for $0.01 per warrant share. The company has the right to redeem these instruments if the volume weighted average price (VWAP) exceeds $22.00 per share for 20 consecutive trading days at least three months after issuance. This condition was met for the 20 days preceding June 10, 2026, with the company recording an average VWAP of $25.17 during that period.
Financial Context and Proceeds
The rights offering completed in July 2024 generated aggregate gross proceeds of $60 million for the company. Additionally, Pulse Biosciences has received $63.7 million of gross proceeds from the redemption of the 150% Warrants and 200% Warrants thus far. If the remaining 200% Warrants are exercised prior to the redemption date, the company expects to receive an additional $2.1 million in gross proceeds.
The first tranche of warrants issued in the rights offering, known as the 150% Warrants, were previously redeemed by the company in February 2025. None of those 150% Warrants remain outstanding.
Warrant Details and Key Dates
The following table summarizes the key details regarding the redemption and exercise of the 200% Warrants:
| Item | Details |
|---|---|
| Warrant Type | 200% Warrants |
| CUSIP | 74587B143 |
| Exercise Price | $11.00 per share |
| Redemption Price | $0.01 per warrant share |
| Exercise Deadline | July 13, 2026, at 5:00 p.m. ET |
| Redemption Trigger | VWAP exceeded $22.00 for 20 consecutive days |
| Average VWAP | $25.17 |
A registration statement on Form S-3 (File No. 333-278494) relating to the rights offering was declared effective by the Securities and Exchange Commission on May 31, 2024. The company noted that neither it nor its board of directors or employees has made any recommendation to holders regarding whether to exercise the warrants. The official notice of redemption will be posted on the company's investor relations website.
How will the potential influx of $2.1 million in proceeds impact Pulse Biosciences' capital allocation strategy over the next year?
Will the redemption of these warrants significantly dilute existing shareholders, and how might the market react to the new share supply?
Does the company plan to utilize its effective Form S-3 shelf registration to raise additional capital following this warrant redemption?
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