ProSomnus Sleep Technologies (“ProSomnus”), the leader in patient-preferred medical devices for the treatment of Obstructive Sleep Apnea (OSA), announced the execution of definitive agreements with institutional investors led by funds affiliated with or managed by Cohanzick Management, LLC and CrossingBridge Advisors, LLC. The financing will support the previously announced, pending merger of ProSomnus and Lakeshore Acquisition I Corp. (“Lakeshore”). The closing of the convertible debt financing is conditioned upon, among other things, the closing of the business combination prior to December 10, 2022. The notes will be issued by the combined company. The combined company is expected to change its name to ProSomnus, Inc. and its class A common stock is expected to be traded on the Nasdaq Capital Market under the symbol “OSA”.
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“The financing is an important step toward closing our business combination with Lakeshore. 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,” said Len Liptak, ProSomnus’s Chief Executive Officer. “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.”
“We believe ProSomnus is at the forefront of treatment for OSA and anticipate rapid but disciplined growth in the future,” said David Sherman on behalf of the lenders. “We expect ProSomnus devices will deliver significant value-added features that offer improved comfort, efficacy, and other advantages over other intraoral devices and CPAP to users at the highest standard of care. Those competitive advantages will be complemented by the launch of ProSomnus’s next-generation device, which will feature integrated remote monitoring capabilities that will be an important tool for healthcare providers treating OSA patients. We look forward to supporting the company in the coming years.”
As a key component of the pending business combination with Lakeshore, ProSomnus, Inc. intends to use a portion of the proceeds of the facility to fund multiple strategic growth initiatives, many of which are already underway. Among these is the continued growth of the sales team, which will be charged with enhancing ProSomnus’ footprint not only in the core US market, but also expand the Company’s presence outside of the US. 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. Other initiatives will include investments in next-gen manufacturing techniques, as well as efforts to raise public awareness of OSA and the value-added features of the ProSomnus Oral Appliance Therapy devices.