CHF Solutions, Inc. Announces Closing of $9.66 Million Underwritten Public Offering and Full Exercise of Over-Allotment Option

EDEN PRAIRIE, Minn., Jan. 28, 2020 (GLOBE NEWSWIRE) — CHF Solutions, Inc. (NASDAQ:CHFS) today announced the closing of an underwritten public offering of units for gross proceeds of approximately $9.66 million, which includes the full exercise of the underwriter’s over-allotment option to purchase additional shares and warrants, prior to deducting underwriting discounts and commissions and offering expenses payable by CHF Solutions.

The offering is comprised of (1) Class A Units, priced at a public offering price of $0.55 per unit, with each unit consisting of one share of common stock and a warrant to purchase one share of common stock at an exercise price of $0.55 per share that expires on the fifth anniversary of the date of issuance, and (2) Class B Units, priced at a public offering price of $0.55 per unit, with each unit consisting of one share of Series H convertible preferred stock, convertible into one share of common stock, and a warrant to purchase one share of common stock with an exercise price of $0.55 per share.

The conversion price of the preferred stock issued in the transaction is fixed and does not contain any variable pricing feature or any price based anti-dilutive feature. The preferred stock issued in this transaction includes a beneficial ownership blocker but has no dividend rights (except to the extent that dividends are also paid on the common stock) or liquidation preference, and, subject to limited exceptions, has no voting rights. The securities comprising the units are immediately separable and were issued separately.

Ladenburg Thalmann & Co. Inc., a subsidiary of Ladenburg Thalmann Financial Services Inc. (NYSE American: LTS), is acting as sole book-running manager in connection with the offering.

A total of 6,046,367 shares of common stock, 11,517,269 shares of Series H convertible preferred stock, and warrants to purchase up to 17,563,636 shares of common stock were issued in the offering, including the full exercise of the over-allotment option.

The securities were offered pursuant to a registration statement on Form S-1 (File No. 333-235385), which was declared effective by the United States Securities and Exchange Commission (“SEC”) on January 24, 2020 and an additional registration statement filed pursuant to Rule 462(b) (File No. 333-236050), which became effective when filed.