IPO for Electromed Expected This Week

Electromed Inc., a company that makes a device that helps lung disease patients breathe, is expected to have its initial public offering this week, according to Associated Press.

The New Prague, MN, company plans to sell 2 million shares for $4 to $6 per share. The underwriter of the IPO will have the option to buy another 300,000 shares to cover excess demand. If all shares are sold, the company said it expects to collect as $9.7 million, after expenses and discounts.

The company makes SmartVest Airway Clearance System, a device that it used to treat conditions that cause secretions to build up in the lungs. It can be prescribed for patients with other illnesses, including cystic fibrosis, muscular dystrophy, surgical complications and chronic lung disease.

The company said it will use proceeds to add employees to its reimbursement, patient services and administrative departments; add members to its sales force; for research and development; and other purposes.

In the nine months ended March 31, the company earned $863 million on revenue of $10.7 million, compared with net income of $1.2 million on revenue of $9.5 million in the prior-year period. Its shares will trade under the symbol "ELMD."