💰💰💰 Semler’s Crypto Quest: $85M Windfall Unveiled! 💰💰💰

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In a twist as cunning as the devil’s own, Semler Scientific has magicked up an additional $10 million for its convertible senior notes, bloating the offering to a grand total of $85 million. Like a sly fox, the company also dangled the carrot of an extra $15 million to its initial purchasers. Why, you ask? To bolster their already burgeoning Bitcoin treasure chest, of course!

Oh, Just an $85M Drop in the Crypto Bucket…

With a flourish of the pen, Semler Scientific has conjured a private offering of $85 million worth of 4.25% convertible senior notes due 2030. The Securities Act of 1933, that venerable dinosaur, provided the exemption needed for this little escapade, targeting only the most ‘qualified’ institutional buyers. The grand finale is set for January 28, 2025, assuming all the stars align.

These notes, as free as a bird, will accumulate interest at a snail-like pace of 4.25% per annum. The lucky recipients will be graced with payments on the first of February and August, starting from 2025. The conversion rate? A magical 13.0826 shares per $1,000 principal amount, implying a conversion price of $76.44 per share—a 25% premium over the stock’s last reported price. Semler Scientific might as well flip a coin to decide if they’ll take cash, stock, or a bit of both after conversion.

Redemption, you say? Not until August 4, 2028, and only if the stock is trading at least 130% of the conversion price. And if a “fundamental change” occurs—like a merger or acquisition—noteholders can force Semler Scientific to buy back the notes at face value plus interest. A strategic move, no doubt, to keep the wolves at bay.

Capped Call Transactions: A Game of Cat and Mouse

In a bid to prevent their stock from being diluted to the point of invisibility, Semler Scientific has entered into capped call transactions. The cap price? A sky-high $107.01 per share, a whole 75% above the stock’s last trading price. A veritable fortress against the hordes of potential dilution.

But worry not, for the financial institutions involved plan to acquire and liquidate Semler Scientific shares like there’s no tomorrow. This little dance might just make the stock price do the tango before and after the transaction. And if the option to purchase more notes is exercised, expect more capped call transactions to follow—because who doesn’t love a good game of financial chess?

Semler Scientific’s Bitcoin Bonanza

Semler Scientific expects to reap approximately $89.0 million from this offering, with a net of $81.4 million, or $95.8 million if the additional $15 million option is exercised. $6.6 million will be squandered on capped call options, while the rest will be funneled into the company’s Bitcoin black hole.

This move is the cherry on top of Semler Scientific’s plan to raise $75 million for their Bitcoin strategy. The company has joined the ranks of corporations adopting Bitcoin, as if it’s the latest fashion trend. Digital assets, it seems, are the new black.

Bitcoin Fever: Spreading Like Wildfire

Semler Scientific’s Bitcoin binge is part of a larger trend. Institutional investors and governments are getting a serious case of Bitcoin fever. The US government is toying with the idea of a Bitcoin reserve, and Senator Cynthia Lummis is leading the charge.

At the World Economic Forum, BlackRock CEO Larry Fink schmoozed with sovereign wealth fund managers about Bitcoin investment. He predicted that if these managers allocate 2% to 5% of their portfolios to Bitcoin, the price could soar to $700,000. Inflated expectations, or the sign of a bubble? Only time will tell. 🚀

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2025-01-24 22:46