Eargo, Inc.: M&A transaction — Patient Square Capital becomes majority owner of Eargo with 76.3% stake after notes conversion and rights offering

Eargo, Inc.

Patient Square now holds ~316.4M shares (76.3% of outstanding common stock) after converting ~$105.5M in notes.
Rights offering raised ~$29.3M gross from stockholders; total net proceeds ~$32.3M including Patient Square's additional $5.5M.
Company has no debt for borrowed money outstanding following note conversion; proceeds earmarked for working capital and omni-channel growth.
Conversion of notes and rights offering issued 375M new shares; Patient Square's ownership triggers board nomination rights proportional to stake.

item 2.04 item 3.02 item 5.01 item 7.01 item 9.01

Key facts

Extracted from this filing and checked against the source text.

M&A Transactions SEC 8-K Item 2.01/5.01 confidence 0.9

Eargo, Inc. underwent a change of control involving Patient Square Capital (closed 2022-11-29).

Action: change of control
Counterparty: Patient Square Capital
Closing: 2022-11-29

Exact text from the filing

subsidiaries, noteholders affiliated with Patient Square Capital (the “Noteholders”) and Drivetrain Agency Services, LLC, as administrative agent and collateral agent, an aggregate of approximately $105.5 million of senior secured convertible notes

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Source: SEC EDGAR

accession 0001140361-22-043474

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