Latham Advises on Outset Medical’s US$169 Million Private Placement Financing

Outset Medical, Inc. (Nasdaq: OM) (Outset), a medical technology company pioneering a first-of-its-kind technology to reduce the cost and complexity of dialysis, has announced that it has entered into a definitive securities purchase agreement for a private placement of 843,908 shares of its Series A Non-Voting Convertible Preferred Stock at a price of US$200 per share. Subject to Outset stockholder approval and beneficial ownership limitations, each share of Series A Non-Voting Convertible Preferred Stock will automatically convert to 250 shares of common stock for an aggregate of 210,977,000 shares of common stock. The gross proceeds to Outset from the private placement, before deducting placement agent fees and other offering expenses payable by Outset, are expected to be US$168.8 million. An additional US$3.9 million, for 19,432 shares of Series A Non-Voting Convertible Preferred Stock, will be invested by certain members of the board and management, including Chair and CEO Leslie Trigg, upon shareholder approval.

Latham & Watkins LLP advised the placement agent in the financing with a capital markets team led by New York partners Nathan Ajiashvili and Salvatore Vanchieri, with associate Kathleen Mehary.