Somanetics plans follow-on of 2 million shares via Citigroup

By Ronda Fears

Nashville, Jan. 31 - Somanetics Corp. on Tuesday announced plans for a follow-on offering of 2 million shares of common stock via bookrunner Citigroup Global Markets Inc. In addition, Somanetics director Robert R. Henry is selling 100,000 shares in a secondary sale.

Joint lead manager is SG Cowen & Co. SunTrust Robinson Humphrey and Rodman & Renshaw are co-managers.

There is a greenshoe of 315,000 shares available, which is only associated with the follow-on offering by the company.

Troy, Mich.-based Somanetics said proceeds, estimated at $51.4 million on a net basis and $59.5 million including the greenshoe, are earmarked to accelerate the expansion of sales and marketing activities, sponsor additional clinical trials and expand the company's research and development.

Somanetics' lead product is the Invos System, a non-invasive patient monitoring system that continuously measures changes in the blood oxygen levels in the brain. The company is in a clinical trial of the Invos System involving diabetic patients over age 50 who are undergoing major general surgery. In addition, Somanetics has the CorRestore System, which includes a cardiac implant.

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