Why Are Sonendo Shares Surging Today?

Sonendo Inc SONX announced a private placement of common stock and pre-funded warrants, resulting in gross proceeds of $63 million led by a consortium of new and existing investors.
Sonendo develops and manufactures the GentleWave System, a technology platform designed to treat tooth decay by cleaning and disinfecting the microscopic spaces within teeth without the need to remove tooth structure.
"This financing meaningfully strengthens our balance sheet and enables us to continue improving patient care and delivering innovative products focused on Saving Teeth. Improving Lives," said Bjarne Bergheim, President, and CEO of Sonendo.
Sonendo will use the proceeds to accelerate ongoing commercialization efforts and expand its current product portfolio.
The company will offer around 23 million shares at $0.95 and pre-funded warrants to purchase an additional 43.3 million at $0.949.
The private placement is expected to close on or about September 27, 2022, subject to the satisfaction of customary closing conditions.
Price Action: SONX shares are up 40% at $1.27 during the premarket session on the last check Friday.