Hims & Hers ticks lower after big boost to convertible offering

Shares of Hims & Hers Health HIMS.N down 0.4% to $51.19 before the bell as telehealth firm's capital raise boosted by ~90%

San Francisco, California-based co late Thurs announced $870 mln 0% 5-yr convertible bond offering, upsized from $450 mln

Initial conversion price of $70.67 represents 37.5% premium to stock's last close

Co plans to use net proceeds for general purposes, including accelerating global expansion through organic growth and potential acquisitions

It intends to use ~$42 mln of net proceeds to pay for capped calls, derivative transactions employed to offset share dilution

Before the bell Thurs, co appointed Mo Elshenawy, former chief technology officer of General Motors' self-driving vehicle unit Cruise, as its new CTO

Co has $11.5 bln market cap, per LSEG data

On Apr 29, HIMS jumped 23% to close at $35.04 after Denmark's Novo Nordisk NOVOb.CO said it would sell its popular weight-loss drug Wegovy through telehealth firms

Through Thurs, HIMS has nearly doubled over the past month. Stock hit record intraday high of $72.98 on Feb 19