HealthStream, Inc. (the "Company") (NASDAQ: HSTM), announced today that it has priced a public offering of 3,250,000 shares of its common stock, consisting of 3,100,000 shares to be sold by the Company and 150,000 shares to be sold by certain selling shareholders at a price of $16.25 per share. William Blair & Company, L.L.C. is serving as the sole book-running manager of the public offering, and Avondale Partners, LLC and Craig-Hallum Capital Group, LLC are serving as co-managers of the public offering. The Company granted the underwriters a 30-day option to purchase up to an additional 487,500 shares at the public offering price, less the underwriting discount, to cover over-allotments, if any. Subject to customary conditions, the offering is expected to close on or about November 23, 2011.
The net proceeds to the Company of the public offering after deducting underwriting discounts and commissions and estimated expenses are expected to be approximately $47.7 million (or approximately $55.2 million if the underwriters exercise their over-allotment in full). The Company intends to use the net proceeds from the public offering for working capital and general corporate purposes and/or to acquire or invest in strategic businesses, products, or technologies. The Company will not receive any proceeds from the sale of shares made by the selling shareholders.