Shares of Semler Scientific Inc. (SMLR) plummeted 7.75% in Friday's intraday trading, significantly underperforming the broader market. The stock's slump came after the company announced plans for a $75 million private offering of convertible senior notes, which raised concerns about potential equity dilution.
The healthcare technology firm disclosed its intention to offer the convertible notes due 2030 to institutional buyers, with an option to purchase up to an additional $15 million worth of notes. While the final terms are yet to be determined, the company stated that it intends to use a portion of the proceeds to fund capped call transactions and for the acquisition of bitcoin, in line with its bitcoin treasury strategy.
Adding to the negative sentiment, Semler Scientific also released preliminary fourth-quarter results, which showed revenue expectations in the range of $12.1 million to $12.5 million. Despite reflecting year-over-year growth, the revenue guidance may have fallen short of some analysts' projections, further weighing on the stock's performance.