Heska Corporation announced that it has entered into a securities purchase agreement for private placement of 125,000 series X convertible preferred shares at a price of $1,000 per share for gross proceeds of $125,000,000 on January 12, 2020. The transaction will include participation from Eversept Global Healthcare Fund, L.P, a fund managed by Eversept Partners, L.P. for 30,000 shares, Nine Ten Partners LP, a fund managed by Nine Ten Capital Management, LLC for 35,000 shares, Park West Investors Master Fund, Limited, and Park West Partners International, Limited, funds managed by Park West Asset Management LLC for 40,000 shares, Janus Investment Fund - Janus Henderson Venture Fund, a fund managed by Janus Capital Management LLC for 19,025 shares, and Janus Henderson Capital Funds plc - Janus US Venture Fund, a fund managed by Janus Capital International Limited for 975 shares. The shares will be convertible into 1,508,751 common shares at a initial conversion price of $82.85 per share, subject to adjustments, subject to the approval of shareholders of the company at its annual general meeting. The transaction is expected to close at the time of the acquisition, subject to customary closing conditions. If the shares are not converted, the company will pay a cash dividend to the owners of preferred shares at an initial per annum rate of 5.75%, which shall increase in subsequent periods up to a maximum per annum rate of 7.25%. The conversion of the preferred shares will result in dilution of less than 20% of total shares of the its public common shares currently issued and outstanding. The company will issue securities pursuant to Regulation D. The transaction will close on or prior to May 31, 2020.