Skip to Content

ProSomnus secures $30M in financing 

ProSomnus secures $30M in financing 

SAN FRANCISCO – ProSomnus Sleep Technologies, a manufacturer of oral appliance therapy devices, has announced definitive agreements with institutional investors led by funds affiliated with or managed by Cohanzick Management and CrossingBridge Advisors. The financing - $30 million of debt comprised of two tranches: $15 million of senior secured convertible notes and $15 million of junior secured convertible notes with maturities of 36 months and 40 months, respectively – will support the previously announced pending merger of ProSomnus and Lakeshore Acquisition I Corp. "The financing is an important step toward closing our business combination with Lakeshore,” said Len Liptak, ProSomnus's CEO. “Together with Lakeshore's remaining cash in trust, this facility will materially strengthen ProSomnus's balance sheet as we begin life as a public company later this year. Taking ProSomnus public is about accessing the resources needed to execute our multi-pronged, strategic growth plan. This facility will be a key component in our ability to drive growth and raise awareness of the value ProSomnus devices bring to patients, physicians and dental sleep medicine providers seeking a more effective treatment for what is a dangerous and highly prevalent disease." The combined company is expected to change its name to ProSomnus and its class A common stock is expected to be traded on the Nasdaq Capital Market under the symbol "OSA". ProSomnus intends to use a portion of the proceeds of the facility to fund multiple strategic growth initiatives, including continued growth of the sales team, which will be charged with enhancing the company’s footprint not only in the core U.S. market, but also outside of the U.S. The company  also plans to complete the development of its next-generation oral appliance therapy, which features embedded sensors allowing sleep physicians to monitor their patients during the critical night hours.  

Comments

To comment on this post, please log in to your account or set up an account now.