XStream Systems plans IPO of up to 2.5M shares

NEW YORK

XStream Systems Inc. plans to offer 2.5 million shares in an initial public offering, according to a Securities and Exchange Commission filing Thursday.

XStream's molecular screening technology is used to screen the structure of hidden materials, with a key goal being the identification of counterfeit pharmaceuticals.

The Sebastian, Fla., company expects to price the offering at $15 per share, for a total estimated offering amount of $37.5 million. The offering breaks down to 2 million shares plus up to an additional 500,000 shares to cover over subscriptions.

The company is also offering $6 million in convertible debentures.

XStream plans on using proceeds to repay notes and fund operations.

"Our technology enables forensic analysis to take place where it is needed, by anyone who needs to authenticate or detect materials," the company said in a statement.

The company's countertop XT250TM Material Identification System can be used outside a laboratory by nontechnical personnel to authenticate pharmaceutical inventories, even when sealed in their original packaging. The products are primarily aimed at businesses and government agencies.

The company said it will apply to list its common stock on the NASDAQ Capital Market.