Filed Pursuant to Rule 424(b)(5)
Registration No. 333-181277
CALCULATION OF REGISTRATION FEE
Title of each class of securities to be registered
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Amount to be
registered(1)
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Proposed
maximum
offering price
per share(2)
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Maximum
aggregate offering
price(2)
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Amount of
registration fee
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Common Stock, $.001 par value
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490,471
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$13.80
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$6,768,499.80
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$923.22
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(1)
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The securities registered herein are offered pursuant to an automatic shelf registration statement. In accordance with Rules
456(b) and 457(r) under the Securities Act, the registrant initially deferred payment of all of the registration fee for Registration
Statement No. 333-181277 filed by the registrant on May 9, 2012.
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(2)
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Estimated pursuant to Rule 457(c) under the Securities Act solely for the purposes of calculating the registration fee
based on the average of the high and low prices of MAKO Surgical Corp. Common Stock on the The Nasdaq Global Select Market on
November 13, 2012.
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Prospectus Supplement to Prospectus dated May 9, 2012
490,471 Shares
MAKO SURGICAL CORP.
Common Stock
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This prospectus supplement relates to the offer and
sale of up to 490,471 shares of our common stock by the selling stockholder listed on page S-7, including its transferees, pledgees
or donees or their respective successors. We are registering these shares on behalf of the selling stockholder, to be offered and
sold by it from time to time.
We will not receive any proceeds from any resale of
the shares of common stock being offered by this prospectus supplement.
We have agreed to bear all expenses (other than direct
expenses incurred by the selling stockholder, such as selling commissions, brokerage fees and expenses and transfer taxes) associated
with registering the shares of common stock covered by this prospectus supplement under federal and state securities laws.
The selling stockholder may sell the shares of common
stock described in this prospectus supplement in a number of different ways and at varying prices. We provide more information
about how the selling stockholder may sell its shares of common stock in the section entitled “Plan of Distribution”
on page S-8.
The common stock is listed on The NASDAQ Global Select
Market under the symbol “MAKO.”
On November 13, 2012, the last reported sale price of the common stock
on The NASDAQ Global Select Market was $13.21 per share.
Investing in our common stock involves risks. Before
making any investment in the common stock, you should carefully consider the risks that are described in the “Risk Factors”
section beginning on page S-3 of this prospectus supplement and the accompanying prospectus.
______________
Neither the Securities and Exchange Commission nor
any state securities commission has approved or disapproved of these securities or determined if this prospectus supplement and
the accompanying prospectus are truthful or complete. Any representation to the contrary is a criminal offense.
The date of this prospectus supplement is November 14,
2012.
TABLE OF CONTENTS
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About this
Prospectus Supplement
This document is in two parts. The first part is this
prospectus supplement, which describes the terms of this offering of common stock and also adds to and updates information contained
in the accompanying prospectus and the documents incorporated by reference into this prospectus supplement and the accompanying
prospectus. The second part, the accompanying prospectus dated May 9, 2012, provides more general information about our common
stock. To the extent the information contained in this prospectus supplement differs or varies from the information contained in
the accompanying prospectus or the documents incorporated by reference, you should rely on the information in this prospectus supplement.
Generally, when we refer to the prospectus, we are referring to this prospectus supplement and the accompanying prospectus combined.
Unless we indicate otherwise, references in this prospectus
supplement and the accompanying prospectus to “MAKO Surgical,” “MAKO,” “the Company,” “we,”
“us,” “our,” or similar references refer to MAKO Surgical Corp.
You should rely only on the information contained or
incorporated by reference in this prospectus supplement and the accompanying prospectus. We have not authorized anyone to provide
you with different information. If anyone provides you with different or inconsistent information, you should not rely on it. You
should assume that the information appearing in this prospectus supplement, the accompanying prospectus and the documents incorporated
by reference in this prospectus supplement and the accompanying prospectus is accurate only as of the date of those respective
documents. Our business, financial condition, results of operations and prospects may have changed since those dates.
All dealers that effect transactions in these securities
whether or not participating in this offering may be required to deliver a prospectus. This is in addition to the dealer’s
obligation to deliver a prospectus when acting as underwriters.
This prospectus supplement and the accompanying prospectus,
including the information incorporated by reference into this prospectus supplement and the accompanying prospectus, include trademarks,
service marks and trade names owned by us or others. We have received or applied for trademark registration of and/or claim trademark
rights, including in the following marks that appear in this prospectus supplement and the accompanying prospectus: “MAKOplasty®,”
“RIO®,” and “RESTORIS®,” as well as in the MAKO Surgical Corp. “MAKO” logo, whether
standing alone or in connection with the words “MAKO Surgical Corp.” All other trademarks, service marks and trade
names included or incorporated by reference in this prospectus supplement and the accompanying prospectus are the property of their
respective owners.
Forward-Looking
STATEMENTS
This prospectus supplement and the accompanying prospectus,
and the documents incorporated by reference in this prospectus supplement and the accompanying prospectus, contain statements that
we believe to be “forward-looking statements” within the meaning of the U.S. federal securities laws. Statements that
are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. Forward-looking
statements include statements generally preceded by, followed by or that include the words “may,” “will,”
“could,” “would,” “should,” “expect,” “intend,” “plan,”
“anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,”
“continue,” “ongoing” or the negative of these terms or other similar expressions. These statements include,
but are not limited to, statements related to:
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the nature, timing and number of planned new product introductions;
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market acceptance of MAKOplasty®, including the RIO® Robotic Arm Interactive Orthopedic system, or RIO system, and
MAKO RESTORIS® family of implant systems;
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future availability from third-party suppliers, including single source suppliers, of implants for and components of our RIO
system;
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the anticipated adequacy of our capital resources to meet the needs of our business;
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our ability to sustain, and our goals for, sales and earnings growth including projections regarding RIO system installations;
and
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our success in achieving timely approval or clearance of products with domestic and foreign regulatory entities.
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Forward-looking statements reflect our current expectations
and are not guarantees of performance. These statements are based on the current estimates and assumptions of our management as
of the date on which such statements are made and are subject to risks, uncertainties, changes in circumstances, assumptions and
other factors that may cause actual results to differ materially from those indicated by forward-looking statements, many of which
are beyond our ability to control or predict. Such factors, among others, may have a material adverse effect on our business, financial
condition and results of operations and may include the following:
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the potentially significant impact of a continued economic downturn or delayed economic recovery on the ability of our customers
to secure adequate funding, including access to credit, for the purchase of our products or cause our customers to delay a purchasing
decision;
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unanticipated changes in the timing of the sales cycle for our products or the vetting process undertaken by prospective customers;
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changes in competitive conditions and prices in our markets;
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delays in our product development cycles;
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unanticipated issues relating to intended product launches;
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decreases in sales of our principal product lines;
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decreases in utilization of our principal product lines or in procedure volume;
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the effects of Hurricane Sandy;
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increases in expenditures related to increased or changing governmental regulation or taxation of our business, both nationally
and internationally;
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unanticipated issues in complying with domestic or foreign regulatory requirements related to our current products,
including initiating and communicating product actions or product recalls, and meeting Medical Device Reporting requirements
and other requirements of the United States Food and Drug
Administration, or securing regulatory clearance or approvals for new products or upgrades or changes to our current products;
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the impact of the United States healthcare reform legislation enacted in March 2010 on hospital spending, reimbursement, and
the taxing of medical device companies;
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the potential impact of the informal Securities and Exchange Commission inquiry and the findings of that inquiry;
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any unanticipated impact arising out of the securities class actions, shareholder derivative actions, or any other litigation
brought against us;
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loss of key management and other personnel or the inability to attract such management and other personnel; and
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unanticipated intellectual property expenditures required to develop, market, and defend our products.
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These and other risks are described in greater detail
under Item 1A, Risk Factors, contained in Part I of our most recent Annual Report on Form 10-K. You are cautioned that reliance
on any forward-looking statement involves risks and uncertainties. Although we believe that the assumptions on which the forward-looking
statements contained herein are based are reasonable, any of those assumptions could prove to be inaccurate given the inherent
uncertainties as to the occurrence or nonoccurrence of future events. There can be no assurance that the forward-looking statements
contained in this prospectus supplement and the accompanying prospectus will prove to be accurate. The inclusion of a forward-looking
statement in this prospectus supplement and the accompanying prospectus should not be regarded as a representation by us that our
objectives will be achieved.
We urge you to consider these factors before investing
in our common stock. We caution you not to place undue reliance on forward-looking statements that speak only as of the date they
were made. We do not undertake any obligation to release any revisions to these forward-looking statements publicly to reflect
events or circumstances after the date of this prospectus supplement or to reflect the occurrence of unanticipated events.
Prospectus
Supplement Summary
The following summary is qualified in its entirety
by, and should be read together with, the more detailed information and financial statements and related notes thereto appearing
elsewhere or incorporated by reference in this prospectus supplement and the accompanying prospectus. Before you decide to invest
in our common stock, you should read the entire prospectus supplement and the accompanying prospectus carefully, including the
risk factors and the financial statements and related notes incorporated by reference in this prospectus supplement and the accompanying
prospectus.
About MAKO Surgical Corp.
We are an emerging medical device company that markets
our RIO Robotic Arm Interactive Orthopedic system, joint specific applications for the knee and hip, and proprietary RESTORIS implants
for orthopedic procedures. We offer MAKOplasty, an innovative, restorative surgical solution that enables orthopedic surgeons to
consistently, reproducibly and precisely treat patient specific osteoarthritic disease.
Corporate Information
We were incorporated in Delaware in November 2004 under
the name MAKO Surgical Corp. The address of our principal executive office is 2555 Davie Road, Fort Lauderdale, Florida 33317,
and our telephone number is (954) 927-2044. Our website address is www.makosurgical.com. We do not incorporate the information
on our website into this prospectus supplement and the accompanying prospectus, and you should not consider it part of this prospectus
supplement and the accompanying prospectus.
THE OFFERING
Common stock offered by selling stockholder
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490,471 shares
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Common stock to be outstanding immediately after this offering
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43,486,700 shares
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Use of proceeds
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The selling stockholder will receive all of the net proceeds from sales of the common stock sold pursuant to this prospectus supplement. We have agreed to bear all expenses (other than direct expenses incurred by the selling stockholder, such as selling commissions, brokerage fees and expenses and transfer taxes) associated with registering the shares of common stock covered by this prospectus supplement under federal and state securities laws.
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Risk factors
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You should read the “Risk Factors” section of this prospectus supplement and in the documents incorporated by reference in this prospectus supplement for a discussion of factors to consider before deciding to invest in shares of our common stock.
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The Nasdaq Global Select Market symbol
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“MAKO”
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The foregoing discussion is based on 42,996,229 shares
of common stock issued and outstanding as of November 8, 2012 and excludes:
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1,210,957 shares of common stock issuable upon the exercise of outstanding warrants as of November 8, 2012, with
a weighted average exercise price of $11.18 per share;
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5,451,601 shares of common stock issuable upon the exercise of outstanding options as of November 8, 2012, with a
weighted average exercise price of $16.61 per share; and
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1,216,234 shares of common stock reserved for future issuance under our stock-based compensation plans as of November 8,
2012 consisting of 925,483 shares of common stock reserved for issuance under our 2008 Omnibus Incentive Plan and 290,751
shares of common stock reserved for issuance under our 2008 Employee Stock Purchase Plan.
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Risk Factors
An investment in our common stock involves a high
degree of risk. You should carefully consider the risks described under “Risk Factors” in Part I, Item 1A in our
most recent Annual Report on Form 10-K for the year ended December 31, 2011, as well as all of the other information contained
in this prospectus supplement and the accompanying prospectus, and incorporated by reference into this prospectus
supplement and the accompanying prospectus, including our financial statements and related notes, before investing in our
common stock. If any of the possible events described in those sections actually occur, our business, business prospects,
cash flow, results of operations or financial condition could be harmed. In this case, the trading price of our common stock
could decline, and you might lose all or part of your investment in our common stock. Additional risks and uncertainties
not presently known to us or that we currently deem immaterial may also impair our operations. In addition to the
foregoing, risks related to ownership of our common stock include the following.
We expect that the price of our common stock may
fluctuate substantially, which could lead to losses for stockholders, possibly resulting in an expansion of the proposed class
period for the existing securities class action or the filing of additional securities class actions.
We expect that the price of our common stock may fluctuate
substantially. The market price for our common stock will be affected by a number of factors, including:
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the receipt, denial or timing of regulatory clearances or approvals of our products or competing products;
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changes in policies affecting third-party coverage and reimbursement in the U.S. and other countries;
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ability of our products, if they receive regulatory clearance, to achieve market success;
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the performance of third-party contract manufacturers and component suppliers;
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our ability to develop sales and marketing capabilities;
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our ability to manufacture our products to commercial standards;
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the success of any collaborations we may undertake with other companies;
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our ability to develop, introduce and market new or enhanced versions of our products on a timely basis;
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actual or anticipated variations in our results of operations or those of our competitors;
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announcements of new products, technological innovations or product advancements by us or our competitors;
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developments with respect to patents and other intellectual property rights;
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sales of common stock or other securities by us or our stockholders in the future;
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additions or departures of key management or other personnel;
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disputes or other developments relating to proprietary rights, including patents, litigation matters and our ability to obtain
patent protection for our technologies;
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trading volume of our common stock;
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changes in earnings estimates or recommendations by securities analysts, failure to obtain analyst coverage of our common stock
or our failure to achieve analyst earnings estimates;
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developments in our industry;
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changes in general economic conditions; and
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general market conditions and other factors unrelated to our operating performance or the operating performance of our competitors.
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In addition, the stock prices of many companies in the
medical device industry have experienced wide fluctuations that have often been unrelated to the operating performance of these
companies. We expect our stock price to be similarly volatile. These broad market fluctuations may continue and could harm our
stock price. Following periods of volatility in the market price of a company’s securities, stockholders have often instituted
class action securities litigation against those companies.
Class action securities litigation, if instituted against
us, could result in substantial costs and a diversion of our management resources, which could significantly harm our business.
In May 2012, two shareholder complaints were filed in
the U.S. District Court for the Southern District of Florida against the Company and certain of its officers and directors as purported
class actions on behalf of all purchasers of the Company’s common stock between January 9, 2012 and May 7, 2012. The cases
were filed under the captions James H. Harrison, Jr. v. MAKO Surgical Corp. et al., No. 12-cv-60875 and Brian Parker v. MAKO Surgical
Corp. et al., No. 12-cv-60954. The court consolidated the Harrison and Parker complaints and appointed Oklahoma Firefighters Pension
and Retirement System and Baltimore County Employees’ Retirement System to serve as co-lead plaintiffs. In September 2012,
the co-lead plaintiffs filed an amended complaint that expanded the proposed class period through July 9, 2012. The amended complaint
alleges the Company, its Chief Executive Officer, President and Chairman, Maurice R. Ferré, M.D., and its Chief Financial
Officer, Fritz L. LaPorte, violated federal securities laws by making misrepresentations and omissions during the proposed class
period about the Company’s financial guidance for 2012 that artificially inflated the Company's stock price. The amended
complaint seeks an unspecified amount of compensatory damages, interest, attorneys’ and expert fees, and costs. In October
2012, the Company, Dr. Ferré, and Mr. LaPorte filed a motion to dismiss the amended complaint in its entirety. The court
has not ruled on that motion.
Additionally, in June and July 2012, four shareholder
derivative complaints were filed against the Company, as nominal defendant, and its board of directors, as well as Dr. Ferré
and, in two cases, Mr. LaPorte. Those complaints allege that the Company’s directors and certain officers violated their
fiduciary duties, wasted corporate assets and were unjustly enriched by allowing the Company to make misrepresentations or omissions
that exposed the Company to the Harrison and Parker class actions and damaged the Company's goodwill.
Two of the derivative actions were filed in the Seventeenth
Judicial Circuit in and for Broward County, Florida and have been consolidated under the caption In re MAKO Surgical Corporation
Shareholder Derivative Litigation, No. 12-cv-16221. By order dated July 3, 2012, the court stayed In re MAKO Surgical Corporation
Shareholder Derivative Litigation pending a ruling on any motions to dismiss filed or to be filed in the Harrison and Parker class
actions.
The two other actions were filed in the U.S. District
Court for the Southern District of Florida under the captions Todd Deehl v. Ferré et al., No. 12-cv-61238 and Robert Bardagy
v. Ferré et al., No. 12-cv-61380. On August 29, 2012, the court consolidated these two federal cases under the caption In
Re MAKO Surgical Corp. Derivative Litig.¸Case No. 12-61238-CIV-COHN-SELTZER and approved the filing of a consolidated complaint.
The consolidated complaint alleges that MAKO's directors and two of its officers breached fiduciary duties, wasted corporate assets
and were unjustly enriched by issuing, or allowing the issuance of, annual sales guidance for 2012 that they allegedly knew lacked
any reasonable basis. The consolidated complaint seeks an unspecified amount of damages, attorneys' and expert fees, costs and
corporate reforms to allegedly improve MAKO's corporate governance and internal procedures. On October 31, 2012, MAKO and the individual
defendants each filed motions to dismiss the consolidated complaint. The court has not ruled on those motions.
Securities analysts may issue negative reports or
cease to cover our common stock, which may have a negative impact on the market price of our common stock.
The trading market for our common stock may be affected
in part by the research and reports that industry or financial analysts publish about us or our business. As a result of our smaller
market capitalization, it may be difficult for our company to continue to attract securities analysts that will cover our common
stock. If one or more of the analysts who elects to cover us downgrades our stock, our stock price would likely decline rapidly.
If one or more of these analysts ceases coverage of our company, we could lose visibility in the market, which in turn could cause
our stock price to decline. This could have a negative effect on the market price of our stock.
Our principal stockholders, directors and executive
officers own a large percentage of our voting stock, which allows them to exercise significant influence over matters subject to
stockholder approval.
As of November 8, 2012, our executive officers, directors
and principal stockholders holding 5% or more of our outstanding common stock beneficially owned or controlled approximately 30%
of the outstanding shares of our common stock. Accordingly, these executive officers, directors and principal stockholders, acting
as a group, have substantial influence over the outcome of corporate actions requiring stockholder approval, including the election
of directors, any merger, consolidation or sale of all or substantially all of our assets or any other significant corporate transaction.
These stockholders may also delay or prevent a change of control or otherwise discourage a potential acquirer from attempting to
obtain control of us, even if such a change of control would benefit our other stockholders. This significant concentration of
stock ownership may adversely affect the trading price of our common stock due to investors’ perception that conflicts of
interest may exist or arise.
We have not paid dividends in the past and do not
expect to pay dividends in the foreseeable future.
We have never declared or paid cash dividends on our
capital stock. We currently intend to retain all future earnings for the operation and expansion of our business and, therefore,
do not anticipate declaring or paying cash dividends in the foreseeable future. The payment of dividends will be at the discretion
of our board of directors and will depend on our results of operations, capital requirements, financial condition, prospects, contractual
arrangements, any limitations on payments of dividends present in any of our future debt agreements, and other factors our board
of directors may deem relevant. If we do not pay dividends, a return on your investment will only occur if our stock price appreciates.
Sales of a substantial number of shares of our common
stock in the public market, or the perception that they may occur, may depress the market price of our common stock.
We cannot predict the effect, if any, that market sales
of shares of our common stock or the availability of such shares upon the effectiveness of a registration statement, or upon the
expiration of any holding period under Rule 144, will have on the market price prevailing from time to time. Substantially all
of the 43 million shares of our common stock currently outstanding are freely tradable without registration pursuant to Rule
144 under the Securities Act of 1933, as amended, or the Securities Act, or have been registered for resale with the SEC and the
sale of such shares could have a negative impact on the price of our common stock. Our shelf registration statement on Form S-3
also permits us to offer and sell at any time or from time to time additional common stock, preferred stock, debt securities and
other securities. This shelf registration statement also may create an overhang. The existence of an overhang, whether or not sales
have occurred or are occurring, also could make more difficult our ability to raise additional financing through the sale of equity
or equity related securities in the future at a time and price that we deem reasonable or appropriate.
Our need to raise additional capital in the future
could have a negative effect on your investment.
We may need to raise additional capital in the future
in order for us to continue to operate our business as currently contemplated. We may raise this additional capital by drawing
on our available credit facility with affiliates of Deerfield Management Company, L.P. or through the public or private sale of
common stock or securities convertible into or exercisable for our common stock. We also have filed with the SEC a shelf registration
statement under which we may offer and sell additional common stock, preferred stock, debt securities and other securities at any
time or from time to time. Such sales could be consummated at a significant discount to the trading price of our stock.
If we sell shares of our common stock in addition to
those sold in the current offering, such sales will further dilute the percentage of our equity that our existing stockholders
own. In addition, private placement financings could involve the issuance of securities at a price per share that represents a
discount to the trading prices of our common stock. Further, debt and equity financings may involve the issuance of dilutive warrants.
No assurance can be given that previous or future investors, finders or placement agents will not claim that they are entitled
to additional anti-dilution adjustments or dispute the calculation of any such adjustments. Any such claim or dispute could require
us to incur material costs and expenses regardless of the resolution and, if resolved unfavorably to us, to effect dilutive securities
issuances or adjustment to previously issued securities.
Our products may in the future be subject to product actions
that could harm our reputation, business operations and financial results.
Manufacturers may, on their own initiative, initiate a product action,
including a non-reportable market withdrawal or a reportable product recall, for the purpose of correcting a material deficiency,
improving device performance, or other reasons. Additionally, the United States Food and Drug Administration, or the FDA, and similar
foreign governmental authorities have the authority to require an involuntary recall of commercialized products in the event of
material deficiencies or defects in design, or manufacture or labeling. In the case of the FDA, the authority to require a recall
must be based on an FDA finding that there is a reasonable probability that the device would cause serious injury or death. In
addition, foreign governmental bodies have the authority to require the recall of our products in the event of material deficiencies
or defects in design or manufacture. Product actions involving any of our products would divert managerial and financial resources
and have an adverse effect on our financial condition and results of operations.
For example, in 2011, we initiated one product action which we then
determined was reportable to the FDA pursuant to correction / removal guidelines, related to a voluntary field corrective action
concerning a software error discovered during product surveillance. Under certain circumstances, the error value calculated by
the RIO system, designed for safety and accuracy of the MAKOplasty procedure, could be incorrect. This incorrect error value could
lead to a possible incorrect interpretation of the registration accuracy of the RIO system, which could then result in bone resection
that is not consistent with the preoperative surgical plan. We released a software update in February 2011 designed to correct
this error. We received a closure notification from the FDA on January 20, 2012. During 2011, we closed a reportable recall
which was initiated in 2010. This reportable recall was related to a defect in the RIO’s camera systems. In November 2010,
Northern Digital Inc., or NDI, the supplier of our camera systems, notified us of a defect in the camera systems. We isolated the
affected camera systems and reported the product action to the FDA in December 2010. We received a closure notification from the
FDA in November 2011. Most recently, in September 2012, we notified the FDA of a correction to the software for our RIO system
after identifying a malfunction in the Partial Knee Application that allows the burr tip to exit the haptic boundary with the burr
enabled under certain circumstances. As a result, the burr may be unrestricted to the desired haptic region during use, potentially
allowing for additional removal of bone or burring divot which may be mediated with bone cement. To date, no injuries have
been reported and the FDA has not yet classified this recall. We expect the software upgrade to be completed across all units
in the field by the end of 2013.
Companies are required to maintain certain records of product actions,
even if they determine such product actions are not reportable to the FDA. If we determine that certain product actions do not
require notification of the FDA, the FDA may disagree with our determinations and require us to report those actions as recalls.
A future recall announcement could harm our reputation with customers and negatively affect our sales. In addition, the FDA could
take enforcement action, including any of the following sanctions for failing to report the recalls when they were conducted or
failing to timely report or initiate a reportable product action:
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untitled letters, warning letters, fines, injunctions, consent decrees and civil penalties;
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customer notifications or repair, replacement, refunds, recall, detention or seizure of our products;
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operating restrictions or partial suspension or total shutdown of production;
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refusing or delaying our requests for 510(k) marketing clearance or premarket approval application,
or PMA, approvals of new products or modified products;
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withdrawing 510(k) marketing clearances or PMA approvals that have already been granted;
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refusing to provide Certificates for Foreign Government, or CFGs;
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refusing to grant export approval for our products; or
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pursuing criminal prosecution.
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Any of these sanctions could impair our ability to produce our products
in a cost-effective and timely manner in order to meet our customers’ demands. We may also be required to bear other costs
or take other actions that may have a negative impact on our future sales and our ability to generate profits.
Use of
Proceeds
This prospectus supplement relates to shares of our
common stock that may be offered and sold from time to time by the selling stockholder named in this prospectus supplement. The
selling stockholder will receive all of the net proceeds from sales of the common stock sold pursuant to this prospectus supplement.
We have agreed to bear all expenses (other than direct
expenses incurred by the selling stockholder, such as selling commissions, brokerage fees and expenses and transfer taxes) associated
with registering such shares under federal and state securities laws.
SELLING
STOCKHOLDER
An aggregate of 490,471 shares of common stock are
being registered in this offering for the account of the selling stockholder, Pipeline Biomedical Holdings, Inc. (“Pipeline”).
All of the shares of common stock being offered and sold under this prospectus supplement are shares that were issued to the selling
stockholder in connection with our execution of a Subscription Agreement (the “Subscription Agreement”), dated November
7, 2012, with Pipeline.
We also entered into a Registration Rights Agreement
with Pipeline dated November 7, 2012 in connection with the Subscription Agreement pursuant to which we agreed to file with the
Securities and Exchange Commission this prospectus supplement that forms a part of our registration statement on Form S-3 to register
the resale of the shares of common stock issued to Pipeline pursuant to the Subscription Agreement and to use our best efforts
to keep the registration statement effective until the earlier of (a) 120 days from the filing of this prospectus supplement,
and (b) such time as all such shares registered hereunder have been sold by the selling stockholder pursuant to and in accordance
with the registration statement. Additional information on our transaction with the selling stockholder is contained in our current
report on Form 8-K (File No. 001-33966), which was filed with the SEC on November 7, 2012 and is incorporated by reference
herein. This description is qualified in its entirety by the complete provisions of the Subscription Agreement and the Registration
Rights Agreement attached as exhibits to the Form 8-K.
The shares offered by this prospectus supplement may
be offered from time to time, in whole or in part, by the selling stockholder or its transferees, pledgees or donees or their respective
successors. The following table sets forth the name of the selling stockholder, the number of shares of common stock the
selling stockholder beneficially owns prior to this offering, the number of shares which may be offered for resale pursuant to
this prospectus supplement and the number of shares and percentage that would be owned by the selling stockholder after the completion
of this offering. The selling stockholder may sell some, all or none of its shares. We do not know how long the selling
stockholder will hold the shares before selling them, and we currently have no agreements, arrangements or understandings with
the selling stockholder regarding the sale of any of the shares. For purposes of the table below, we have assumed that the
selling stockholder sells all of such shares. This table is prepared based on information supplied to us by the selling stockholder
and reflects holdings as of November 13, 2012.
Selling Stockholder
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Shares of
Common Stock
Beneficially
Owned Prior to the Offering
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Shares of
Common
Stock Being Offered
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Shares of Common Stock
(1)
Beneficially Owned After
the Offering
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Shares
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Percentage
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Pipeline Biomedical Holdings, Inc.
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0
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490,471
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490,471
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1%
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(1)
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Calculated pursuant to Rule 13d-3 of the Securities Exchange Act of 1934, as amended. Under Rule 13d-3(d),
shares not outstanding which are subject to options, warrants, rights or conversion privileges exercisable within 60 days are deemed
outstanding for the purpose of calculating the number and percentage owned by each other person listed. As of November 8, 2012,
we had 42,996,229 shares of common stock outstanding.
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Plan
of Distribution
We are registering the shares
of common stock offered in this prospectus supplement on behalf of the selling stockholder. The term selling stockholder, which
as used herein includes pledgees, donees, transferees or other successors-in-interest selling shares received from the selling
stockholder as a gift, pledge, partnership distribution or other transfer after the date of this prospectus supplement, may, from
time to time, sell, transfer or otherwise dispose of any or all of its shares of common stock or interests in shares of common
stock on any stock exchange, market or trading facility on which the shares are traded or in private transactions. The selling
stockholder will pay any brokerage commissions and similar selling expenses attributable to the sale of the shares. We will not
receive any of the proceeds from the sale of the shares by the selling stockholder.
These dispositions may be at
fixed prices, at prevailing market prices at the time of sale, at prices related to the prevailing market price, at varying prices
determined at the time of sale, or at negotiated prices. To the extent the selling stockholder gifts, pledges or otherwise transfers
the shares offered hereby, such transferees may offer and sell the shares from time to time under this prospectus supplement, provided
that this prospectus supplement has been amended under Rule 424(b)(3) or other applicable provision of the Securities Act to include
the name of such transferee in the list of selling stockholders under this prospectus supplement.
The selling stockholder may
use any one or more of the following methods when disposing of shares or interests therein:
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ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;
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block trades in which the broker-dealer will attempt to sell the shares as agent, but may position and resell a portion of
the block as principal to facilitate the transaction;
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purchases by a broker-dealer as principal and resale by the broker-dealer for its account;
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an exchange distribution in accordance with the rules of the applicable exchange;
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privately negotiated transactions;
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through the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise;
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broker-dealers may agree with the selling stockholders to sell a specified number of such shares at a stipulated price per
share;
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a combination of any such methods of sale; and
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any other method permitted pursuant to applicable law.
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The selling stockholder may,
from time to time, pledge or grant a security interest in some or all of the shares of common stock owned by it and, if the selling
stockholder defaults in the performance of its secured obligations, the pledgees or secured parties may offer and sell the shares
of common stock, from time to time, under this prospectus supplement, or under an amendment to this prospectus supplement under
Rule 424(b)(3) or other applicable provision of the Securities Act amending the list of selling stockholders to include the pledgee,
transferee or other successors in interest as selling stockholders under this prospectus supplement.
In connection with the sale
of our common stock or interests therein, the selling stockholder may enter into hedging transactions with broker-dealers or other
financial institutions, which may in turn engage in short sales of the common stock in the course of hedging the positions they
assume. The selling stockholder may also sell shares of our common stock short and deliver these securities to close out their
short positions, or loan or pledge the common stock to broker-dealers that in turn may sell these securities. The selling stockholder
may also enter into option or other transactions with broker-dealers or other financial institutions or the creation of one or
more derivative securities which require the delivery to such broker-dealer or other financial institution of shares offered by
this prospectus supplement, which shares such broker-dealer or other financial institution may resell pursuant to this prospectus
supplement (as supplemented or amended to reflect such transaction).
The aggregate proceeds to the
selling stockholder from the sale of the common stock offered by it will be the purchase price of the common stock less discounts
or commissions, if any. The selling stockholder reserves the right to accept and, together with their agents from time to time,
to reject, in whole or in part, any proposed purchase of common stock to be made directly or through agents. We will not receive
any of the proceeds from this offering.
To the extent required, the
shares of our common stock to be sold, the name of the selling stockholder, the respective purchase prices and public offering
prices, the names of any agents, dealer or underwriter, any applicable commissions or discounts with respect to a particular offer
will be set forth in an accompanying prospectus supplement or, if appropriate, a post-effective amendment to the registration statement
that includes this prospectus supplement.
In order to comply with the
securities laws of some states, if applicable, the common stock may be sold in these jurisdictions only through registered or licensed
brokers or dealers. In addition, in some states the common stock may not be sold unless it has been registered or qualified for
sale or an exemption from registration or qualification requirements is available and is complied with.
We have advised the selling
stockholder that the anti-manipulation rules of Regulation M under the Exchange Act may apply to sales of shares in the market
and to the activities of the selling stockholder and its affiliates. In addition, we will make copies of this prospectus supplement
(as it may be supplemented or amended from time to time) available to the selling stockholder for the purpose of satisfying the
prospectus delivery requirements of the Securities Act. The selling stockholder may indemnify any broker-dealer that participates
in transactions involving the sale of the shares against certain liabilities, including liabilities arising under the Securities
Act.
We have agreed to indemnify
the selling stockholder against liabilities, including liabilities under the Securities Act and state securities laws, relating
to the registration of the shares offered by this prospectus supplement.
We have agreed with the selling
stockholder to keep the registration statement that includes this prospectus supplement effective until the earlier of (1) 120
days from the filing of this prospectus supplement and (2) such time as all such shares registered hereunder have been sold by
the selling stockholder pursuant to and in accordance with the registration statement of which this prospectus supplement is a
part.
The selling stockholder and any broker dealers that
acts in connection with the sale of the shares might be deemed to be “underwriters” as the term is defined in Section
2(11) of the Securities Act. Consequently, any commissions received by these broker dealers and any profit on the resale of the
shares sold by them while acting as principals might be deemed to be underwriting discounts or commissions under the Securities
Act. Because the selling stockholder may be deemed to be an “underwriter” as defined in Section 2(11) of the Securities
Act, the selling stockholder may be subject to the prospectus delivery requirements of the Securities Act.
The selling stockholder also
may resell all or a portion of the shares in open market transactions in reliance upon Rule 144 under the Securities Act of 1933,
provided that it meets the criteria and conform to the requirements of that Rule.
DESCRIPTION
OF COMMON STOCK
The following description of our common stock summarizes
general terms and provisions that apply to our common stock. This summary is not complete and is qualified in its entirety by reference
to applicable Delaware law, our third amended and restated certificate of incorporation and our fourth amended and restated bylaws,
which are filed as exhibits to the registration statement of which this prospectus supplement is a part and incorporated by reference
into this prospectus supplement. See “Where You Can Find More Information.”
As of the date of this prospectus supplement, our authorized
capital stock consists of 135,000,000 shares of common stock, par value $0.001 per share, and 27,000,000 shares of preferred
stock, par value $0.001 per share. As of November 8, 2012, 42,996,229 shares of common stock were issued and
outstanding and no shares of preferred stock were issued and outstanding. As of November 8, 2012, there were
1,210,957 shares of common stock issuable upon the exercise of outstanding warrants, 5,451,601 shares of common stock
issuable upon the exercise of outstanding options; and 1,216,234 shares of common stock reserved for future issuance
under our 2008 Omnibus Incentive Plan and our 2008 Employee Stock Purchase Plan, as well as any automatic increases in the
number of shares of our common stock reserved for future issuance under these benefit plans.
General.
Our authorized capital stock consists
of 135,000,000 shares of common stock, par value $0.001 per share, and 27,000,000 shares of preferred stock, par value $0.001 per
share.
Outstanding Shares and Voting Rights
. Each holder
of common stock is entitled to one vote for each share of common stock held on all matters submitted to a vote of the stockholders,
including the election of directors. Our third amended and restated certificate of incorporation and fourth amended and restated
bylaws do not provide for cumulative voting rights. Because of this, the holders of a majority of the shares of common stock entitled
to vote in any election of directors can elect all of the directors standing for election, if they should so choose.
Dividends
. Subject to preferences that may be
applicable to any then outstanding preferred stock, the holders of our outstanding shares of common stock are entitled to receive
dividends, if any, as may be declared from time to time by our board of directors out of legally available funds.
Liquidation
. In the event of our liquidation,
dissolution or winding up, holders of common stock will be entitled to share ratably in the net assets legally available for distribution
to stockholders after the payment of all of our debts and other liabilities, subject to the satisfaction of any liquidation preference
granted to the holders of any outstanding shares of preferred stock.
Rights and Preferences
. Holders of our common
stock have no preemptive, conversion or subscription rights, and there are no redemption or sinking fund provisions applicable
to our common stock. The rights, preferences and privileges of the holders of common stock are subject to, and may be adversely
affected by, the rights of the holders of shares of any series of our preferred stock that we may designate and issue in the future.
Fully Paid and Nonassessable
. All of our outstanding
shares of common stock are fully paid and nonassessable.
Registration Rights
. On November 7, 2012, we
entered into a Subscription Agreement (the “Subscription Agreement”), dated November 7, 2012, with Pipeline Biomedical
Holdings, Inc. (“Pipeline”). In connection with the execution of the Subscription Agreement, on November 13, 2012,
we issued to Pipeline 490,471 shares of our common stock.
We entered into a registration rights agreement
with Pipeline pursuant to which we agreed to file a shelf registration statement for the resale of the shares of our common stock
issued to Pipeline under the Subscription Agreement, which obligation we have satisfied with the filing of the registration statement
of which this prospectus supplement is a part, and to keep such resale registration statement effective until the earlier of (a)
120 days from the filing of this prospectus supplement, and (b) such time as all such shares registered hereunder have been sold
by the selling stockholder pursuant to and in accordance with the registration statement of which this prospectus supplement is
a part.
Exchange Listing
. Our common stock is listed
on The Nasdaq Global Select Market under the symbol “MAKO.”
Transfer Agent and Registrar.
The transfer agent
and registrar for our common stock is Continental Stock Transfer and Trust Company. The transfer agent and registrar’s address
is 17 Battery Place, 8th Floor, New York, New York 10004.
Legal Matters
Foley & Lardner LLP will pass upon the validity
of the common stock being offered by this prospectus supplement.
EXPERTS
The financial statements of MAKO Surgical
Corp. appearing in MAKO Surgical Corp.’s Annual Report (Form 10-K) for the year ended December 31, 2011, and
the effectiveness of MAKO Surgical Corp.’s internal control over financial reporting as of December 31, 2011, have
been audited by Ernst & Young LLP, independent registered public accounting firm, as set forth in their reports
thereon included therein, and incorporated herein by reference. Such financial statements are, and audited financial
statements to be included in subsequently filed documents will be, incorporated herein in reliance upon the reports of Ernst
& Young LLP pertaining to such financial statements and the effectiveness of our internal control over financial
reporting as of the respective dates (to the extent covered by consents filed with the Securities and Exchange Commission)
given on the authority of such firm as experts in accounting and auditing.
WHERE YOU CAN FIND MORE INFORMATION
We file annual, quarterly and current reports, proxy
statements and other information with the SEC. We have also filed a registration statement on Form S-3, including exhibits, under
the Securities Act, with respect to the shares of common stock offered by this prospectus supplement. This prospectus supplement
and the accompanying prospectus are a part of the registration statement, but do not contain all of the information included in
the registration statement or the exhibits. You may read and copy the registration statement and any document that we file at the
SEC’s public reference room at 100 F Street, N.E., Washington DC, 20549. You can call the SEC at 1-800-SEC-0330 for further
information on the operation of the public reference room. You can also find our public filings with the SEC on the internet at
a web site maintained by the SEC located at http://www.sec.gov.
We are “incorporating by reference” specified
documents that we file with the SEC, which means:
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incorporated documents are considered part of this prospectus supplement;
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we are disclosing important information to you by referring you to those documents; and
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information we file with the SEC will automatically update and supersede information contained in this prospectus supplement.
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We incorporate by reference the documents listed below:
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our Annual Report on Form 10-K for the year ended December 31, 2011;
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our Definitive Proxy Statement on Schedule 14A filed on April 27, 2012;
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our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2012 and June 30, 2012;
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our Current Reports on Form 8-K (excluding any portions thereof that are deemed to be furnished and not filed) filed January
31, 2012, February 27, 2012, May 7, 2012, June 5, 2012, June 11, 2012, July 3, 2012, July 23, 2012, August 1, 2012, October 3,
2012 and November 7, 2012; and
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the description of our common stock contained in our Registration Statement on Form 8-A filed February 14, 2008, and any amendments
or reports filed for the purpose of updating such description.
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All documents we file with the SEC pursuant to Sections
13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934 after the date of this prospectus supplement and prior to the
termination of this offering, shall be deemed to be incorporated by reference into this prospectus supplement and to be part of
this prospectus supplement from the date of the filing of the documents with the SEC.
We will provide to each person to whom a prospectus
is delivered a copy of any of the filings incorporated by reference into this prospectus supplement, at no cost, upon written or
oral request directed to us at the following address or telephone number:
Investor Relations
MAKO Surgical Corp.
2555 Davie Road
Fort Lauderdale, FL 33317
(954) 927-2044
investorrelations@makosurgical.com
You can also find these filings on our website at www.makosurgical.com.
However, we are not incorporating the information on our website other than these filings into this prospectus supplement or the
accompanying prospectus.
Table of Contents
Prospectus
MAKO Surgical Corp.
Debt Securities
Common Stock
Preferred Stock
Warrants
Stock Purchase Contracts
Stock Purchase Units
_________________________
We may offer
and sell from time to time our securities in one or more classes or series and
in amounts, at prices and on terms that we will determine at the times of the
offerings.
This
prospectus describes the general manner in which our securities may be offered
using this prospectus. We will provide specific terms of the securities,
including the offering prices, in one or more supplements to this prospectus.
The supplements may also add, update or change information contained in this
prospectus. You should read this prospectus and the prospectus supplement
relating to the specific issue of securities carefully before you invest.
We may
offer the securities independently or together in any combination for sale
directly to purchasers or through underwriters, dealers or agents to be
designated at a future date. The supplements to this prospectus will provide
the specific terms of the plan of distribution.
In
addition, selling stockholders to be named in a prospectus supplement may offer
and sell from time to time shares of our common stock in such amounts as set
forth in a prospectus supplement. Unless otherwise set forth in a prospectus
supplement, we will not receive any proceeds from the sale of shares of our
common stock by any selling stockholders.
Our common
stock is listed on The Nasdaq Global Select Market under the symbol MAKO.
Investment
in our securities involves risks. See Risk Factors in our most recent Annual
Report on Form 10-K and in any applicable prospectus supplement and/or other
offering material for a discussion of certain factors which should be
considered in an investment of the securities which may be offered hereby.
_________________________
Neither the
Securities and Exchange Commission nor any state securities commission has
approved or disapproved of these securities or determined if this prospectus is
truthful or complete. Any representation to the contrary is a criminal offense.
The date of this prospectus is May
9, 2012.
_________________________
- 2 -
TABLE OF
CONTENTS
A
BOUT THIS PROSPECTUS
Unless
the context otherwise requires, in this prospectus, MAKO, company, we,
us, our and ours refer to MAKO Surgical Corp.
This
prospectus is part of a registration statement that we filed with the
Securities and Exchange Commission, or SEC, using a shelf registration
process. Under this shelf registration process, we may, from time to time, sell
the securities or combinations of the securities described in this prospectus
in one or more offerings. This prospectus provides you with a general
description of the securities that we may offer. Each time we offer securities,
we will provide a prospectus supplement and/or other offering material that
will contain specific information about the terms of that offering. The
prospectus supplement and/or other offering material may also add, update or
change information contained in this prospectus. You should read this
prospectus, any prospectus supplement and any other offering material together
with additional information described under the heading Where You Can Find
More Information.
You should
rely only on the information contained or incorporated by reference in this
prospectus and in any prospectus supplement or other offering material. We have
not authorized any other person to provide you with different information. If
anyone provides you with different or inconsistent information, you should not
rely on it. We are not making offers to sell or solicitations to buy the
securities in any jurisdiction in which an offer or solicitation is not
authorized or in which the person making that offer or solicitation is not
qualified to do so or to anyone to whom it is unlawful to make an offer or
solicitation. You should not assume that the information in this prospectus,
any prospectus supplement or any other offering material, or the information we
previously filed with the SEC that we incorporate by reference in this
prospectus or any prospectus supplement, is accurate as of any date other than
its respective date. Our business, financial condition, results of operations
and prospects may have changed since those dates.
We
have received or applied for trademark registration of and/or claim trademark
rights, including the following marks that appear in this prospectus:
MAKOplasty®, RIO®, and RESTORIS®, as well as in the MAKO Surgical Corp.
MAKO logo, whether standing alone or in connection with the words MAKO
Surgical Corp. Any other trademarks, trade names and service marks appearing
in this prospectus or incorporated by reference are the property of their
respective owners.
- 3 -
Table of Contents
M
AKO SURGICAL CORP.
We
are an emerging medical device company that markets our advanced robotic arm
solution and orthopedic implants for orthopedic procedures. We offer
MAKOplasty, an innovative, restorative surgical solution that enables
orthopedic surgeons to consistently, reproducibly and precisely treat patient
specific osteoarthritic disease.
MAKOplasty
is performed using our proprietary RIO Robotic Arm Interactive Orthopedic, or
RIO, system, MAKOplasty joint specific software applications for the knee and
hip, and proprietary RESTORIS implant systems. The RIO system is a surgeon-interactive tactile surgical
platform that incorporates a robotic arm and patient-specific visualization
technology, which enables precise, consistently reproducible bone resection for
the accurate insertion and alignment of MAKOs RESTORIS family of implants.
We believe MAKOplasty will empower physicians to address the needs of the large
and growing, yet underserved, population of patients with osteoarthritic
disease who desire a restoration of quality of life and reduction of pain, but
for whom current surgical treatments are not appropriate or optimized.
We are a
Delaware corporation and our principal executive offices are located at 2555
Davie Road, Fort Lauderdale, Florida 33317. Our telephone number is (954)
927-2044. Our website address is www.makosurgical.com. We do not incorporate
the information on our website into this prospectus, and you should not
consider it part of this prospectus.
U
SE OF PROCEEDS
Unless
otherwise described in the applicable prospectus supplement, we intend to use
the net proceeds from the sale of the securities for general corporate
purposes.
R
ATIO OF EARNINGS TO FIXED CHARGES AND
RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDEND AND
ACCRETION REQUIREMENTS
The
following table presents our ratio of earnings to fixed charges and ratio of
earnings to combined fixed charges and preferred stock dividend and accretion
requirements for the periods presented.
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Three
Months Ended
March 31,
2012
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Years Ended December 31,
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2011
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2010
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2009
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2008
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2007
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Ratio of earnings to fixed charges
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(1)
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(1)
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(1)
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(1)
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(1)
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(1)
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Ratio of earnings to combined fixed charges and
preferred stock dividend and accretion requirements
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(2)
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(2)
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(2)
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(2)
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(3)
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(3)
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(1)
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Earnings
for the three months ended March 31, 2012, and for the years ended
December 31, 2011, 2010, 2009, 2008 and 2007 were inadequate to cover
total fixed charges. The coverage deficiencies for the three months ended
March 31, 2012, and for the years ended December 31, 2011, 2010,
2009, 2008 and 2007 were $11.7 million, $36.0 million, $38.6 million, $34.0
million, $37.1 million and $20.7 million, respectively.
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(2)
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All
outstanding shares of our preferred stock were converted to common stock
immediately prior to the closing of our initial public offering on February
20, 2008. Accordingly, we did not have any preferred stock outstanding and we
did not pay or accrue any preferred stock dividends during the three months
ended March 31, 2012 and during the years ended December 31, 2011, 2010 and
2009.
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(3)
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Earnings
for the years ended December 31, 2008 and 2007 were inadequate to cover
combined fixed charges and preferred stock dividend and accretion
requirements. The coverage deficiencies for the years ended December 31,
2008 and 2007 were $37.6 million and $24.3 million, respectively.
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Table of Contents
For purposes
of calculating the ratios of earnings to fixed charges, earnings before income
taxes and fixed charges are divided by fixed charges. Fixed charges represent
interest (whether expensed or capitalized), the amortization of debt discount
and expenses and the estimated interest component of rent expense.
D
ESCRIPTION OF DEBT SECURITIES
The
following description of the terms of the debt securities sets forth general
terms that may apply to the debt securities and provisions of the indenture
that will govern the debt securities, and is not complete. We will describe the
particular terms of any debt securities in the prospectus supplement relating
to those debt securities.
The
debt securities will be our senior debt securities and will be issued under an
indenture between us and a trustee, a form of which is incorporated by
reference into this prospectus and attached as an exhibit to the registration
statement of which this prospectus is a part. See Where You Can Find More
Information. We refer to this indenture as the indenture.
The
following is a summary of some provisions of the indenture. The following
summary does not purport to be complete, and is subject to, and qualified in
its entirety by reference to, all of the provisions of the indenture, including
the definitions of specified terms used in the indenture, and the debt
securities. We encourage you to read the indenture and the debt securities
because they, and not this description, set forth your rights as a holder of
our debt securities. We will describe the particular terms of any debt
securities in the prospectus supplement relating to those debt securities.
Parenthetical section references under this heading are references to sections
in the indenture unless we indicate otherwise.
General Terms
The
indenture does not limit the amount of debt securities that we may issue.
(Section 301). The indenture provides that debt securities may be issued up to
the principal amount authorized by us from time to time. The debt securities
will be unsecured and will have the same rank as all of our other unsecured and
unsubordinated debt. None of our subsidiaries, if any, will have any
obligations with respect to the debt securities. Therefore, our rights and the
rights of our creditors, including holders of senior debt securities and
subordinated debt securities, to participate in the assets of any subsidiary
will be subject to the prior claims of the creditors of any such subsidiaries.
We
may issue the debt securities in one or more separate series of senior debt
securities. (Section 301). The prospectus supplement relating to the particular
series of debt securities being offered will specify the particular amounts,
prices and terms of those debt securities. These terms may include:
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the title of
the debt securities and the series in which the debt securities will be
included;
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the
authorized denominations and aggregate principal amount of the debt
securities;
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the date or
dates on which the principal and premium, if any, are payable;
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the rate or
rates per annum at which the debt securities will bear interest, if there is
any interest, or the method or methods of calculating interest and the date
from which interest will accrue;
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the place or
places where the principal of and any premium and interest on the debt
securities will be payable;
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the dates on
which the interest will be payable and the corresponding record dates;
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the period
or periods within which, the price or prices at which, and the terms and
conditions on which, the debt securities may be redeemed, in whole or in
part, at our option;
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Table of Contents
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any
obligation to redeem, repay or purchase debt securities pursuant to any
sinking fund or analogous provisions or at the option of a holder;
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the portion
of the principal amount of the debt securities payable upon declaration of
the acceleration of the maturity of the debt securities;
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the person
to whom any interest on any debt security will be payable if other than the
person in whose name the debt security is registered on the applicable record
date;
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any events
of default, covenants or warranties applicable to the debt securities;
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if
applicable, provisions related to the issuance of debt securities in
book-entry form;
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the
currency, currencies or composite currency of denomination of the debt
securities;
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the
currency, currencies or composite currencies in which payments on the debt
securities will be payable and whether the holder may elect payment to be
made in a different currency;
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whether and
under what conditions we will pay additional amounts to holders of the debt
securities;
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the terms
and conditions of any conversion or exchange provisions in respect of the
debt securities;
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the terms
pursuant to which our obligation under the indenture may be terminated
through the deposit of money or government obligations; and
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any other
specific terms of the debt securities not inconsistent with the indenture.
(Section 301).
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Unless
otherwise specified in the applicable prospectus supplement, the debt
securities will not be listed on any securities exchange.
Unless
the applicable prospectus supplement specifies otherwise, we will issue the
debt securities in fully registered form without coupons. If we issue debt
securities of any series in bearer form, the applicable prospectus supplement
will describe the special restrictions and considerations, including special
offering restrictions and special federal income tax considerations, applicable
to those debt securities and to payment on and transfer and exchange of those
debt securities.
U.S. Federal Income Tax Considerations
We
may issue the debt securities as original issue discount securities, bearing no
interest or bearing interest at a rate, which, at the time of issuance, is
below market rates, to be sold at a substantial discount below their principal
amount. We will describe some special U.S. federal income tax and other
considerations applicable to any debt securities that are issued as original
issue discount securities in the applicable prospectus supplement. We encourage
you to consult with your own competent tax and financial advisors on these
important matters.
Payment, Registration, Transfer and Exchange
Subject
to any applicable laws or regulations, we will make payments on the debt
securities at a designated office or agency, unless the applicable prospectus
supplement otherwise sets forth. At our option, however, we may also make
interest payments on the debt securities in registered form:
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by checks
mailed to the persons entitled to interest payments at their registered
addresses; or
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by wire
transfer to an account maintained by the person entitled to interest payments
as specified in the security register.
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Unless the
applicable prospectus supplement otherwise indicates, we will pay any
installment of interest on debt securities in registered form to the person in
whose name the debt security is registered at the close of business on the
regular record date for that installment of interest. (Section 307). If a
holder wishes to receive payment by wire transfer, the holder should provide
the paying agent with written wire transfer instructions at least 15 days prior
to the payment date.
Unless
the applicable prospectus supplement otherwise sets forth, debt securities
issued in registered form will be transferable or exchangeable at the agency we
may designate from time to time. Debt securities may be transferred or
exchanged without service charge, other than any tax or other governmental
charge imposed in connection with the transfer or exchange. (Section 305).
Book-Entry Procedures
The
applicable prospectus supplement for each series of debt securities will state
whether those debt securities will be subject to the following provisions.
Unless
debt securities in physical form are issued, the debt securities will be
represented by one or more fully-registered global certificates, in
denominations of $1,000 or any integral multiple of $1,000. Each global
certificate will be deposited with, or on behalf of, The Depository Trust
Company, which we refer to in this prospectus as DTC, and registered in its
name or in the name of Cede & Co. or other nominee of DTC. No holder of
debt securities initially issued as a global certificate will be entitled to
receive a certificate in physical form, except as set forth below.
DTC
has advised us that:
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DTC is:
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a banking
organization within the meaning of the New York banking law;
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a limited
purpose trust company organized under the New York banking law;
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a member of
the Federal Reserve System;
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a clearing
corporation within the meaning of the New York Uniform Commercial Code; and
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a clearing
agency registered pursuant to Section 17A of the Securities Exchange Act of
1934, as amended, or the Exchange Act.
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DTC holds
securities for DTC participants and facilitates the settlement of securities
transactions between DTC participants through electronic book-entry transfers
and pledges, thereby eliminating the need for physical movement of
certificates.
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DTC
participants include securities brokers and dealers, banks, trust companies,
clearing corporations and other organizations.
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Access to
DTCs book-entry system is also available to others, such as banks, brokers,
dealers, trust companies and clearing corporations that clear through or
maintain a custodial relationship with a DTC participant, either directly or
indirectly.
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Holders
that are not DTC participants but desire to purchase, sell or otherwise
transfer ownership of, or other interests in, the debt securities may do so
only through DTC participants. In addition, holders of the debt securities will
receive all distributions of principal and interest from the trustee through
DTC participants. Under the rules, regulations and procedures creating and
affecting DTC and its operation, DTC is required to make book-entry transfers
of debt securities among DTC participants on whose behalf it acts and to
receive and transmit distributions of principal of, and interest on, the debt
securities. Under the book-entry system, holders of debt securities may
experience some delay in receipt of payments, since the trustee will forward
such payments to Cede & Co., as nominee for DTC, and DTC, in turn, will
forward the payments to the appropriate DTC participants.
DTC
participants will be responsible for distributions to holders of debt
securities, which distributions will be made in accordance with customary
industry practices. Although holders of debt securities will not have
possession of the debt securities, the DTC rules provide a mechanism by which
those holders will receive payments and will be able to transfer their
interests. Although the DTC participants are expected to convey the rights
represented by their interests in any global security to the related holders,
because DTC can act only on behalf of DTC participants, the ability of holders
of debt securities to pledge the debt securities to persons or entities that
are not DTC participants or to otherwise act with respect to the debt
securities may be limited due to the lack of physical certificates for the debt
securities.
Neither
we nor the trustee will be responsible or liable for any aspect of the records
relating to, or payments made on account of, beneficial ownership interests in
the debt securities or for supervising or reviewing any records relating to
such beneficial ownership interests. Since the only holder of debt
securities, for purposes of the indenture, will be DTC or its nominee, the
trustee will not recognize beneficial holders of debt securities as holders of
debt securities, and beneficial holders of debt securities will be permitted
to exercise the rights of holders only indirectly through DTC and DTC
participants. DTC has advised us that it will take any action permitted to be
taken by a holder of debt securities under the indenture only at the direction
of one or more DTC participants to whose accounts with DTC the related debt
securities are credited.
All
payments we make to the trustee will be in immediately available funds and will
be passed through to DTC in immediately available funds.
Physical
certificates will be issued to holders of a global security, or their nominees,
if:
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DTC advises
the trustee in writing that DTC is no longer willing, able or eligible to
discharge properly its responsibilities as depository and we are unable to
locate a qualified successor; or
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we decide in
our sole discretion to terminate the book-entry system through DTC. (Section
305).
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In such event,
the trustee will notify all holders of debt securities through DTC participants
of the availability of such physical debt securities. Upon surrender by DTC of
a definitive global note representing the debt securities and receipt of
instructions for reregistration, the trustee will reissue the debt securities
in physical form to holders or their nominees. (Section 305).
Debt
securities in physical form will be freely transferable and exchangeable at the
office of the trustee upon compliance with the requirements set forth in the
indenture.
No
service charge will be imposed for any registration of transfer or exchange,
but payment of a sum sufficient to cover any tax or other governmental charge
may be required. (Section 305).
Consolidation, Merger or Sale by the Company
The
indenture generally permits a consolidation or merger between us and another
U.S. corporation. It also permits the sale or transfer by us of all or
substantially all of our property and assets and the purchase by us of all or
substantially all of the property and assets of another corporation. These
transactions are permitted if:
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the
resulting or acquiring corporation, if other than us, assumes all of our
responsibilities and liabilities under the indenture, including the payment
of all amounts due on the debt securities and performance of the covenants in
the indenture; and
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immediately
after the transaction, no event of default exists. (Section 801).
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Even
though the indenture contains the provisions described above, we are not
required by the indenture to comply with those provisions if we sell all of our
property and assets to another U.S. corporation if, immediately after the sale,
that corporation is one of our wholly-owned subsidiaries. (Section 803).
If
we consolidate or merge with or into any other corporation or sell all or
substantially all of our assets according to the terms and conditions of the
indenture, the resulting or acquiring corporation will be substituted for us in
the indenture with the same effect as if it had been an original party to the
indenture. As a result, the successor corporation may exercise our rights and
powers under the indenture, in our name or in its own name and we will be
released from all our liabilities and obligations under the indenture and under
the debt securities. (Section 802).
Events of Default, Notice and Certain Rights
on Default
Unless
otherwise stated in the applicable prospectus supplement, an event of
default, when used with respect to any series of debt securities, means any of
the following:
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failure to
pay interest on any debt security of that series for 30 days after the
payment is due;
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failure to
pay the principal of or any premium on any debt security of that series when
due;
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failure to
deposit any sinking fund payment on debt securities of that series when due;
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failure to
perform any other covenant in the indenture that applies to debt securities
of that series for 90 days after we have received written notice of the
failure to perform in the manner specified in the indenture;
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certain
events in bankruptcy, insolvency or reorganization; or
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any other
event of default that may be specified for the debt securities of that series
when that series is created. (Section 501).
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If
an event of default for any series of debt securities occurs and continues, the
trustee or the holders of at least 25% in aggregate principal amount of the
outstanding debt securities of the series may declare the entire principal of
all the debt securities of that series to be due and payable immediately. If a
declaration occurs, the holders of a majority of the aggregate principal amount
of the outstanding debt securities of that series can, subject to certain
conditions, rescind the declaration. (Section 502).
The
prospectus supplement relating to each series of debt securities which are
original issue discount securities will describe the particular provisions that
relate to the acceleration of maturity of a portion of the principal amount of
that series when an event of default occurs and continues.
An
event of default for a particular series of debt securities does not
necessarily constitute an event of default for any other series of debt
securities issued under the indenture.
The
indenture requires us to furnish an officers certificate to the trustee each
year as to the knowledge of our principal executive, financial or accounting
officer of our compliance with all conditions and covenants under the
indenture. (Section 1008). The trustee will transmit by mail to the holders of
debt securities of a series notice of any default.
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Other
than its duties in the case of a default, the trustee will not be obligated to
exercise any of its rights or powers under an indenture at the request, order
or direction of any holders, unless the holders offer the trustee
indemnification satisfactory to the trustee. (Section 603). If indemnification
satisfactory to the trustee is provided, then, subject to certain other rights
of the trustee, the holders of a majority in principal amount of the
outstanding debt securities of any series may, with respect to the debt
securities of that series, direct the time, method and place of:
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conducting
any proceeding for any remedy available to the trustee; or
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exercising
any trust or power conferred upon the trustee. (Section 512).
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The
holder of a debt security of any series will have the right to begin any
proceeding with respect to the indenture or for any remedy only if:
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the holder
has previously given the trustee written notice of a continuing event of
default with respect to that series;
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the holders
of at least 25% in aggregate principal amount of the outstanding debt
securities of that series have made a written request of, and offered
reasonable indemnification to, the trustee to begin the proceeding;
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the trustee
has not started the proceeding within 60 days after receiving the request;
and
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the trustee
has not received directions inconsistent with the request from the holders of
a majority in aggregate principal amount of the outstanding debt securities
of that series during those 60 days. (Section 507).
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The
holders of not less than a majority in aggregate principal amount of any series
of debt securities, by notice to the trustee for that series, may waive, on
behalf of the holders of all debt securities of that series, any past default
or event of default with respect to that series and its consequences. (Section
513). A default or event of default in the payment of the principal of, or
premium or interest on, any debt security and certain other defaults may not,
however, be waived. (Sections 508 and 513).
Modification of the Indenture
We, as well as
the trustee for a series of debt securities, may enter into one or more
supplemental indentures, without the consent of the holders of any of the debt
securities, in order to:
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evidence the
succession of another corporation to us and the assumption of our covenants
by a successor;
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add to our
covenants or surrender any of our rights or powers;
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add
additional events of default for any series;
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add, change
or eliminate any provision affecting debt securities that are not yet issued;
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secure the debt
securities;
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establish
the form or terms of debt securities not yet issued;
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evidence and
provide for successor trustees;
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add, change
or eliminate any provision affecting registration as to principal of debt
securities;
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permit the
exchange of debt securities;
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change or
eliminate restrictions on payment in respect of debt securities;
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change or
eliminate provisions or add any other provisions that are required or
desirable in accordance with any amendments to the Trust Indenture Act of
1939, which we refer to in this prospectus as the Trust Indenture Act, on the
condition that this action does not adversely affect the interests of any
holder of debt securities of any series issued under the indenture in any
material respect; or
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cure any
ambiguity or correct any mistake. (Section 901).
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In
addition, with the consent of the holders of not less than a majority in
aggregate principal amount of the outstanding debt securities of all series
affected by the supplemental indenture, we and the trustee may execute
supplemental indentures adding any provisions to or changing or eliminating any
of the provisions of the indenture or any supplemental indenture or modifying
the rights of the holders of debt securities of that series. No such
supplemental indenture may, however, without the consent of the holder of each
debt security that is affected:
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change the
time for payment of principal or interest on any debt security;
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reduce the
principal of, or any installment of principal of, or interest on, any debt
security;
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reduce the
amount of premium, if any, payable upon the redemption of any debt security;
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reduce the
amount of principal payable upon acceleration of the maturity of an original
issue discount debt security;
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impair the
right to institute suit for the enforcement of any payment on or for any debt
security;
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reduce the
percentage in principal amount of the outstanding debt securities of any
series the consent of whose holders is required for modification or amendment
of the indenture or for waiver of compliance with certain provisions of the
indenture or for waiver of certain defaults;
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modify the
provisions relating to waiver of some defaults or any of the foregoing
provisions;
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change the
currency of payment;
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adversely
affect the right to repayment of debt securities of any series at the option
of the holders of those debt securities; or
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change the
place of payment. (Section 902).
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Any
supplemental indenture will be filed with the SEC as an exhibit to:
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a
post-effective amendment to the registration statement of which this
prospectus is a part;
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an annual
report on Form 10-K;
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a quarterly
report on Form 10-Q; or
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a current
report on Form 8-K.
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Defeasance and Covenant Defeasance
When
we use the term defeasance, we mean discharge from some or all of our
obligations under the indenture. If we deposit with the trustee sufficient cash
or government obligations to pay the principal, interest, any premium and any
mandatory sinking fund or analogous payments due to the stated maturity or a
redemption date of the debt securities of a particular series, then at our
option:
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we will be
discharged from our obligations for the debt securities of that series, the
holders of the debt securities of the affected series will no longer be
entitled to the benefits of the indenture, except for registration of
transfer and exchange of debt securities and replacement of lost, stolen or
mutilated debt securities, and those holders may look only to the deposited
funds or obligations for payment, which is referred to as defeasance; or
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we will no longer
be under any obligation to comply with certain covenants under the indenture
as it relates to that series, and some events of default will no longer apply
to us, which is referred to as covenant defeasance. (Sections 403 and
1501).
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Unless
the applicable prospectus supplement specifies otherwise and except as
described below, the conditions to both defeasance and covenant defeasance
are as follows:
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it must not
result in a breach or violation of, or constitute a default or event of
default under, the indenture, or result in a breach or violation of, or
constitute a default under, any other of our material agreements or
instruments;
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certain
bankruptcy-related defaults or events of default with respect to us must not
have occurred and be occurring during the period commencing on the date of
the deposit of the trust funds to defease the debt securities and ending on
the 91st day after that date;
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we must
deliver to the trustee an officers certificate and an opinion of counsel
addressing compliance with the conditions of the defeasance or covenant
defeasance; and
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we must
comply with any additional conditions to the defeasance or covenant
defeasance that the indenture may impose on us. (Sections 403 and 1501).
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In
the event that government obligations deposited with the trustee for the
defeasance of such debt securities decrease in value or default subsequent to
their being deposited, we will have no further obligation, and the holders of
the debt securities will have no additional recourse against us, for any
decrease in value or default. If indicated in the prospectus supplement, in
addition to obligations of the United States or an agency or instrumentality of
the United States, government obligations may include obligations of the
government or an agency or instrumentality of the government issuing the
currency in which debt securities of such series are payable.
We
may exercise our defeasance option for the debt securities even if we have
already exercised our covenant defeasance option. If we exercise our defeasance
option, payment of the debt securities may not be accelerated because of
default or an event of default. If we exercise our covenant defeasance option,
payment of the debt securities may not be accelerated because of default or an
event of default with respect to the covenants to which the covenant defeasance
is applicable. If, however, acceleration occurs, the realizable value at the
acceleration date of the money and government obligations in the defeasance
trust could be less than the principal and interest then due on the debt
securities, because the required deposit in the defeasance trust is based on
scheduled cash flow rather than market value, which will vary depending on
interest rates and other factors.
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Conversion and Exchange Rights
The
debt securities of any series may be convertible into or exchangeable for other
securities of our company or another issuer or property or cash on the terms
and subject to the conditions set forth in the applicable prospectus
supplement. (Section 301).
Governing Law
The
indenture and the debt securities will be governed by, and construed under, the
laws of the State of New York without regard to conflicts of laws principles
thereof.
Regarding the Trustee
We
may from time to time maintain lines of credit, and have other customary
banking relationships, with the trustee under the indenture.
The
indenture and provisions of the Trust Indenture Act that are incorporated by
reference therein contain limitations on the rights of the trustee, should it
become one of our creditors, to obtain payment of claims in certain cases or to
realize on certain property received by it in respect of any such claim as
security or otherwise. The trustee is permitted to engage in other transactions
with us or any of our affiliates; provided, however, that if it acquires any
conflicting interest (as defined under the Trust Indenture Act), it must
eliminate such conflict or resign.
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D
ESCRIPTION OF CAPITAL STOCK
Our
authorized capital stock consists of 135,000,000 shares of common stock, par
value $0.001 per share, and 27,000,000 shares of preferred stock, par value
$0.001 per share. As of May 7, 2012, 42,572,138 shares of our common stock were outstanding. As of the
date of this prospectus, no shares of our preferred stock were outstanding.
The
following description of our capital stock summarizes general terms and
provisions that apply to our capital stock. This summary is not complete and is
qualified in its entirety by reference to applicable Delaware law, our third
amended and restated certificate of incorporation and our fourth amended and
restated bylaws, which are filed as exhibits to the registration statement of
which this prospectus is a part and incorporated by reference into this
prospectus. See Where You Can Find More Information.
Common Stock
Outstanding
Shares and Voting Rights
. Each holder of common stock
is entitled to one vote for each share of common stock held on all matters
submitted to a vote of the stockholders, including the election of directors.
Our third amended and restated certificate of incorporation and fourth amended
and restated bylaws do not provide for cumulative voting rights. Because of
this, the holders of a majority of the shares of common stock entitled to vote
in any election of directors can elect all of the directors standing for
election, if they should so choose.
Dividends
.
Subject to preferences that may be applicable to any then outstanding preferred
stock, the holders of our outstanding shares of common stock are entitled to
receive dividends, if any, as may be declared from time to time by our board of
directors out of legally available funds.
Liquidation
.
In the event of our liquidation, dissolution or winding up, holders of common
stock will be entitled to share ratably in the net assets legally available for
distribution to stockholders after the payment of all of our debts and other
liabilities, subject to the satisfaction of any liquidation preference granted
to the holders of any outstanding shares of preferred stock.
Rights
and Preferences
. Holders of our common stock have no
preemptive, conversion or subscription rights, and there are no redemption or
sinking fund provisions applicable to our common stock. The rights, preferences
and privileges of the holders of common stock are subject to, and may be
adversely affected by, the rights of the holders of shares of any series of our
preferred stock that we may designate and issue in the future.
Fully
Paid and Nonassessable
. All of our outstanding shares
of common stock are fully paid and nonassessable.
Registration
Rights.
On May 7, 2012, we entered into a facility
agreement with affiliates of Deerfield Management Company, L.P., or Deerfield,
pursuant to which Deerfield agreed to loan us up to $50 million, subject to the
terms and conditions set forth in the facility agreement. We have the
flexibility, but are not required to, draw down on the facility agreement in
$10 million increments at any time until May 15, 2013. In connection with the
execution of the facility agreement, on May 7, 2012, we issued to Deerfield
warrants to purchase 275,000 shares of our common stock at an exercise price
equal to a 20% premium to the mean closing price of our common stock over the
20 trading days beginning on May 8, 2012. As noted above, we have the right to
draw down on the facility agreement one or more cash disbursements in the
minimum amount of $10 million per disbursement. Each $10 million disbursement
will be accompanied by the issuance to Deerfield of warrants to purchase
140,000 shares of our common stock, at an exercise price equal to a 20% premium
to the mean closing price of our common stock over the five trading days
following receipt by Deerfield of the draw notice. If we, in our discretion,
elect to draw down the entire $50 million under the facility agreement, we will
have issued warrants to purchase a total of 975,000 shares of our common stock.
The warrants expire seven years from their issuance.
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We
have entered into a registration rights agreement with Deerfield pursuant to
which we agreed to file a shelf registration statement for the resale of the
shares of our common stock underlying the Deerfield warrants, which obligation
we have satisfied with the filing of this registration statement, and to keep
such resale registration statement effective until Deerfield has completed the
sales of the shares of our common stock under the registration statement or its
shares have been distributed pursuant to Rule 144. The registration rights
agreement also provides Deerfield with piggyback registration rights if we have
not kept this or another shelf registration statement relating to the shares
underlying the Deerfield warrants effective.
Preferred Stock
Under
the third amended and restated certificate of incorporation, our board of
directors has the authority, without further action by the stockholders, to
issue up to 27,000,000 shares of preferred stock in one or more series, to
establish from time to time the number of shares to be included in each such
series, to fix the rights, preferences and privileges of the shares of each
wholly unissued series and any qualifications, limitations or restrictions
thereon, and to increase or decrease the number of shares of any such series,
but not below the number of shares of such series then outstanding.
Our
board of directors may authorize the issuance of preferred stock with voting or
conversion rights that could adversely affect the voting power or other rights
of the holders of the common stock. The issuance of preferred stock, while
providing flexibility in connection with possible acquisitions and other
corporate purposes, could, among other things, have the effect of delaying,
deferring or preventing a change in our control and may adversely affect the
market price of the common stock and the voting, liquidation and other rights
of the holders of common stock.
If
we offer preferred stock, we will file the terms of the preferred stock with
the SEC and the prospectus supplement and/or other offering material relating
to that offering will include a description of the specific terms of the
offering, including the following:
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the series,
the number of shares offered and the liquidation value of the preferred
stock;
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the price at
which the preferred stock will be issued;
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the dividend
rate, the dates on which the dividends will be payable and other terms
relating to the payment of dividends on the preferred stock;
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the
liquidation preference of the preferred stock;
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the voting
rights of the preferred stock;
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whether the
preferred stock is redeemable or subject to a sinking fund, and the terms of
any such redemption or sinking fund;
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whether the
preferred stock is convertible or exchangeable for any other securities, and
the terms of any such conversion; and
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any
additional rights, preferences, qualifications, limitations and restrictions
of the preferred stock.
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Warrants
As
of May 7, 2012, warrants exercisable for a total of 1,327,770 shares of our
common stock were outstanding. Of these, warrants to purchase 190,457 shares of
our common stock were issued to Z-KAT, Inc., our predecessor company, in
exchange for the license of intellectual property and transfer of other assets.
Pursuant to an exchange agreement between us, Z-KAT and certain creditors of
Z-KAT, Z-KAT transferred the warrants for our common stock and other assets to
the creditors in exchange for such creditors cancellation of outstanding debt.
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Warrants
to purchase 272,259 shares of our common stock were purchased by purchasers of
equity in a prior round of financing for cash consideration of $0.03 per share.
These warrants were immediately exercisable at an exercise price of $3.00 per
share and will expire in December 2014. These warrants have a net exercise provision
under which the holder may, in lieu of payment of the exercise price in cash,
surrender the warrant and receive a net amount of shares of common stock based
on the fair market value of our common stock at the time of exercise of the
warrant after deduction of the aggregate exercise price. These warrants also
contain provisions for the adjustment of the exercise price and the aggregate
number of shares issuable upon the exercise of the warrants in the event of
stock dividends, stock splits or stock combinations, recapitalizations,
reorganizations or reclassifications. Of the aggregate 462,716 warrants issued
to Z-KAT and the purchasers described in this paragraph, warrants exercisable
for 310,872 shares of our common stock were outstanding as of May 7, 2012.
Warrants
to acquire 1,290,323 shares of our common stock, at an exercise price of $7.44
per share, were purchased by certain accredited investors in connection with
their purchase of shares of our common stock in October 2008 for cash consideration
of $0.125 per warrant. These warrants became exercisable on April 29, 2009, are
exercisable for cash or by net exercise and have a term of seven years. As of
May 7, 2012, 598,741 warrants were outstanding. Certain of the investors also
received a second tranche of warrants to purchase 322,581 shares of our common
stock, at an exercise price of $6.20 per share, that became exercisable on
December 31, 2009. All of the warrants described in this paragraph contain
provisions for the adjustment of the exercise price and the aggregate number of
shares issuable upon the exercise of the warrants in the event of stock
dividends, stock splits or stock combinations, recapitalizations,
reorganizations or reclassifications. As of May 7, 2012, 143,157 warrants were
outstanding.
Warrants
to acquire 275,000 shares of our common stock, at an exercise price equal to a
20% premium to the mean closing price of our common stock over the 20 trading
days beginning on May 8, 2012, were issued to Deerfield in connection with our
entry into a facility agreement with Deerfield pursuant to which Deerfield
agreed to loan us up to $50.0 million, subject to the terms and conditions set
forth in the facility agreement. These warrants will become exercisable on June 6, 2012,
are exercisable for cash or by net exercise and have a term of seven years.
These warrants also contain provisions for the adjustment of the exercise price
and the aggregate number of shares issuable upon the exercise of the warrants
in the event of stock dividends, stock splits or stock combinations,
recapitalizations, reorganizations or reclassifications. As of May 7, 2012,
275,000 warrants were outstanding.
Delaware Anti-Takeover Law and Provisions of
our Third Amended and Restated Certificate of Incorporation and Fourth Amended
and Restated Bylaws
Delaware
Anti-Takeover Law
. We are subject to Section 203 of
the Delaware General Corporation Law. Section 203 generally prohibits a public
Delaware corporation from engaging in a business combination with an
interested stockholder for a period of three years after the date of the
transaction in which the person became an interested stockholder, unless:
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prior to the
date of the transaction, the board of directors of the corporation approved
either the business combination or the transaction which resulted in the
stockholder becoming an interested stockholder;
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the
interested stockholder owned at least 85% of the voting stock of the
corporation outstanding at the time the transaction commenced, excluding for
purposes of determining the number of shares outstanding (a) shares owned by
persons who are directors and also officers and (b) shares owned by employee
stock plans in which employee participants do not have the right to determine
confidentially whether shares held subject to the plan will be tendered in a
tender or exchange offer; or
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on or
subsequent to the date of the transaction, the business combination is
approved by the board and authorized at an annual or special meeting of
stockholders, and not by written consent, by the affirmative vote of at least
66 2/3% of the outstanding voting stock which is not owned by the interested
stockholder.
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Section
203 generally defines a business combination to include:
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any merger
or consolidation involving the corporation and the interested stockholder;
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any sale,
transfer, pledge or other disposition involving the interested stockholder of
10% or more of either the assets of the corporation or the aggregate market
value of all the outstanding stock of the corporation;
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subject to
exceptions, any transaction that results in the issuance or transfer by the
corporation of any stock of the corporation to the interested stockholder;
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subject to
exceptions, any transaction involving the corporation with the effect of
increasing the proportionate share of stock of the corporation; or
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the receipt
by the interested stockholder of the benefit of any loans, advances,
guarantees, pledges or other financial benefits provided by or through the
corporation.
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In
general, Section 203 defines an interested stockholder as any entity or person
beneficially owning 15% or more of the outstanding voting stock of the
corporation and any entity or person affiliated with or controlling or
controlled by the entity or person.
Third
Amended and Restated Certificate of Incorporation and Fourth Amended and
Restated Bylaws
. Provisions of our third amended and
restated certificate of incorporation and fourth amended and restated bylaws
may delay or discourage transactions involving an actual or potential change in
our control or change in our management, including transactions in which
stockholders might otherwise receive a premium for their shares, or
transactions that our stockholders might otherwise deem to be in their best
interests. Therefore, these provisions could adversely affect the price of our
common stock. Among other things, our third amended and restated certificate of
incorporation and fourth amended and restated bylaws:
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permit our
board of directors to issue up to 27,000,000 shares of preferred stock, with
any rights, preferences and privileges as they may designate, including the
right to approve an acquisition or other change in our control;
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provide that
the authorized number of directors may be changed only by resolution of the
board of directors;
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provide that
all vacancies, including newly created directorships, may, except as
otherwise required by law, be filled by the affirmative vote of a majority of
directors then in office, even if less than a quorum;
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divide our
board of directors into three classes;
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require that
any action to be taken by our stockholders must be effected at a duly called
annual or special meeting of stockholders and not be taken by written
consent;
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provide that
stockholders seeking to present proposals before a meeting of stockholders or
to nominate candidates for election as directors at a meeting of stockholders
must provide notice in compliance with applicable requirements;
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do not
provide for cumulative voting rights (therefore allowing the holders of a
majority of the shares of common stock entitled to vote in any election of
directors to elect all of the directors standing for election, if they should
so choose);
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provide that
special meetings of our stockholders may be called only by the board of
directors pursuant to a resolution adopted by a majority of the board of
directors; and
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provide that
stockholders will be permitted to amend our amended and restated bylaws only
upon receiving at least 66 2/3% of the votes entitled to be cast by holders
of all outstanding shares then entitled to vote generally in the election of
directors, voting together as a single class.
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Except
as otherwise provided, the amendment of any of these provisions would require
approval by the holders of at least a majority of our then outstanding common
stock, voting as a single class.
Nasdaq Global Select Market Listing
Our
common stock is listed on The Nasdaq Global Select Market under the symbol
MAKO.
Transfer Agent and Registrar
The
transfer agent and registrar for our common stock is Continental Stock Transfer
and Trust Company. The transfer agent and registrars address is 17 Battery
Place, 8th Floor, New York, New York 10004.
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D
ESCRIPTION OF WARRANTS
As
of May 7, 2012, warrants exercisable for a total of 1,327,770 shares of our common stock were outstanding.
See Description of Capital Stock Warrants for a description of the
outstanding warrants.
We may
issue other warrants in the future for the purchase of debt securities, common
stock or other securities. Warrants may be issued independently or together
with debt securities or common stock offered by any prospectus supplement
and/or other offering material and may be attached to or separate from any such
offered securities. Each series of warrants will be issued under a separate
warrant agreement to be entered into between us and a bank or trust company, as
warrant agent, all as will be set forth in the prospectus supplement and/or
other offering material relating to the particular issue of warrants. The
warrant agent will act solely as our agent in connection with the warrants and
will not assume any obligation or relationship of agency or trust for or with
any holders of warrants or beneficial owners of warrants.
The
following summary of certain provisions of the warrants we may issue in the
future does not purport to be complete and is subject to, and is qualified in
its entirety by reference to, all provisions of the warrant agreements.
Reference
is made to the prospectus supplement and/or other offering material relating to
the particular issue of warrants offered pursuant to such prospectus supplement
and/or other offering material for the terms of and information relating to
such warrants, including, where applicable:
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the
designation, aggregate principal amount, currencies, denominations and terms
of the series of debt securities purchasable upon exercise of warrants to
purchase debt securities and the price at which such debt securities may be
purchased upon such exercise;
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the number
of shares of common stock purchasable upon the exercise of warrants to
purchase common stock and the price at which such number of shares of common
stock may be purchased upon such exercise;
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the
designation and number of units of other securities purchasable upon the
exercise of warrants to purchase other securities and the price at which such
number of units of such other securities may be purchased upon such exercise;
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the date on
which the right to exercise such warrants shall commence and the date on which
such right shall expire;
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U.S. federal
income tax consequences applicable to such warrants;
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the amount
of warrants outstanding as of the most recent practicable date; and
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any other
terms of such warrants.
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Warrants will
be issued in registered form only. The exercise price for warrants will be
subject to adjustment in accordance with the applicable prospectus supplement
and/or other offering material.
Each
warrant will entitle the holder thereof to purchase such principal amount of
debt securities or such number of shares of common stock or other securities at
such exercise price as shall in each case be set forth in, or calculable from,
the prospectus supplement and/or other
offering material relating to the warrants, which exercise price may be
subject to adjustment upon the occurrence of certain events as set forth in
such prospectus supplement and/or other
offering material. After the close of business on the expiration date,
or such later date to which such expiration date may be extended by us,
unexercised warrants will become void. The place or places where, and the
manner in which, warrants may be exercised shall be specified in the prospectus
supplement and/or other offering material relating
to such warrants.
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Prior
to the exercise of any warrants to purchase debt securities, common stock or
other securities, holders of such warrants will not have any of the rights of
holders of debt securities, common stock or other securities, as the case may
be, purchasable upon such exercise, including the right to receive payments of
principal of, premium, if any, or interest, if any, on the debt securities
purchasable upon such exercise or to enforce covenants in the applicable
indenture, or to receive payments of dividends, if any, on the common stock
purchasable upon such exercise, or to exercise any applicable right to vote.
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D
ESCRIPTION OF STOCK
PURCHASE CONTRACTS AND STOCK PURCHASE UNITS
We
may issue stock purchase contracts, including contracts obligating holders to
purchase from us, and obligating us to sell to the holders, a specified number
of shares of common stock or other securities at a future date or dates, which
we refer to in this prospectus as stock purchase contracts. The price per
share of the securities and the number of shares of the securities may be fixed
at the time the stock purchase contracts are issued or may be determined by
reference to a specific formula set forth in the stock purchase contracts. The
stock purchase contracts may be issued separately or as part of units
consisting of a stock purchase contract and debt securities, warrants, other
securities or debt obligations of third parties, including U.S. treasury
securities, securing the holders obligations to purchase the securities under
the stock purchase contracts, which we refer to herein as stock purchase
units. The stock purchase contracts may require holders to secure their
obligations under the stock purchase contracts in a specified manner. The stock
purchase contracts also may require us to make periodic payments to the holders
of the stock purchase units or vice versa, and those payments may be unsecured
or refunded on some basis.
The
stock purchase contracts, and, if applicable, collateral or depositary
arrangements, relating to the stock purchase contracts or stock purchase units,
will be filed with the SEC in connection with the offering of stock purchase
contracts or stock purchase units. The prospectus supplement and/or other offering material relating to a
particular issue of stock purchase contracts or stock purchase units will
describe the terms of those stock purchase contracts or stock purchase units,
including the following:
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if applicable, a discussion of
material U.S. federal income tax considerations; and
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any other information we think
is important about the stock purchase contracts or the stock purchase units.
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If we issue stock purchase units where debt
obligations of third parties are used as security for your obligations to
purchase or sell shares of common stock or preferred stock or other securities,
we will include in the prospectus supplement and/or other offering material
relating to the offering information about the issuer of the debt securities.
Specifically, if the issuer has a class of securities registered under the
Exchange Act, and is either eligible to register its securities on
Form S-3 under the Securities Act, or meets the listing criteria to be
listed on a national securities exchange, we will include a brief description
of the business of the issuer, the market price of its securities and how you
can obtain more information about the issuer. If the issuer does not meet the
criteria described in the previous sentence, we will include substantially all
of the information that would be required if the issuer were making a public
offering of the debt securities.
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SE
LLING
STOCKHOLDERS
We
may register shares of common stock covered by this prospectus for re-offers
and resales by any selling stockholders to be named in a prospectus supplement.
We may register these shares to permit selling stockholders to resell their
shares when they deem appropriate. A selling stockholder may resell all, a
portion or none of such stockholders shares at any time and from time to time.
Selling stockholders may also sell, transfer or otherwise dispose of some or
all of their shares of our common stock in transactions exempt from the
registration requirements of the Securities Act. We do not know when or in what
amounts the selling stockholders may offer shares for sale under this
prospectus and any prospectus supplement. We will not receive any proceeds from
any sale of shares by a selling stockholder under this prospectus and any
prospectus supplement. We may pay all expenses incurred with respect to the
registration of the shares of common stock owned by the selling stockholders, other
than underwriting fees, discounts or commissions which will be borne by the
selling stockholders. We will provide you with a prospectus supplement naming
the selling stockholders, the amount of shares to be registered and sold and
any other terms of the shares of common stock being sold by each selling
stockholder.
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W
HERE YOU CAN FIND MORE
INFORMATION
We
file annual, quarterly and current reports, proxy statements and other
information with the SEC. We also filed a registration statement on Form S-3,
including exhibits, under the Securities Act with respect to the securities
offered by this prospectus. This prospectus is a part of the registration
statement, but does not contain all of the information included in the
registration statement or the exhibits. You may read and copy the registration
statement and any other document that we file at the SECs public reference
room at 100 F Street, N.E., Washington D.C. 20549. You can call the SEC at
1-800-SEC-0330 for further information on the operation of the public reference
room. You can also find our public filings with the SEC on the internet at a
web site maintained by the SEC located at http://www.sec.gov.
We
are incorporating by reference specified documents that we file with the SEC,
which means:
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incorporated documents are
considered part of this prospectus;
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we are disclosing important
information to you by referring you to those documents; and
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information we file with the
SEC will automatically update and supersede information contained in this
prospectus.
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We
incorporate by reference the documents listed below and any future filings we
make with the SEC under Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act
(i) after the date of the registration statement on Form S-3 filed under
the Securities Act with respect to securities offered by this prospectus and
prior to the effectiveness of such registration statement and (ii) after
the date of this prospectus and before the end of the offering of the
securities pursuant to this prospectus:
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our Annual Report on
Form 10-K for the year ended December 31, 2011;
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our Definitive Proxy Statement on Schedule 14A filed
April 27, 2012;
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our Quarterly Reports on Form 10-Q for the quarter
ended March 31, 2012;
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our Current Reports on Form 8-K (excluding any
portions thereof that are deemed to be furnished and not filed) filed January
31, 2012, February 27, 2012 and May 7, 2012; and
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the description of our common stock contained in our
Registration Statement on Form 8-A, filed February 14, 2008, and any
amendments or reports filed for the purpose of updating that description.
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Information
in this prospectus supersedes related information in the documents listed
above, and information in subsequently filed documents supersedes related
information in both this prospectus and the incorporated documents.
We
will promptly provide, without charge to you, upon written or oral request, a
copy of any or all of the documents incorporated by reference in this
prospectus, other than exhibits to those documents, unless the exhibits are
specifically incorporated by reference in those documents. Requests should be
directed to:
Investor Relations
MAKO Surgical Corp.
2555 Davie Road
Fort Lauderdale, FL 33317
(954) 927-2044
investorrelations@makosurgical.com
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You
can also find these filings on our website at www.makosurgical.com. We are not
incorporating the information on our website other than these filings into this
prospectus.
P
LAN OF DISTRIBUTION
We
may sell our securities, and any selling stockholder may sell shares of
our common stock, in any one or more of the following ways from time to time:
(1) through agents; (2) to or through underwriters; (3) through
brokers or dealers; (4) directly by us or any selling stockholders to
purchasers, including through a specific bidding, auction or other process; or
(5) through a combination of any of these methods of sale. The applicable
prospectus supplement and/or other offering materials will contain the terms of
the transaction, name or names of any underwriters, dealers, agents and the
respective amounts of securities underwritten or purchased by them, the initial
public offering price of the securities, and the applicable agents commission,
dealers purchase price or underwriters discount. Any selling stockholders,
dealers and agents participating in the distribution of the securities may be
deemed to be underwriters, and compensation received by them on resale of the
securities may be deemed to be underwriting discounts. Additionally, because
selling stockholders may be deemed to be underwriters within the meaning of
Section 2(11) of the Securities Act, selling stockholders may be subject to the
prospectus delivery requirements of the Securities Act.
Any
initial offering price, dealer purchase price, discount or commission may be
changed from time to time.
The
securities may be distributed from time to time in one or more transactions, at
negotiated prices, at a fixed price or fixed prices (that may be subject to
change), at market prices prevailing at the time of sale, at various prices
determined at the time of sale or at prices related to prevailing market
prices.
Offers
to purchase securities may be solicited directly by us or any selling
stockholder or by agents designated by us from time to time. Any such agent may
be deemed to be an underwriter, as that term is defined in the Securities Act,
of the securities so offered and sold.
If
underwriters are utilized in the sale of any securities in respect of which
this prospectus is being delivered, such securities will be acquired by the
underwriters for their own account and may be resold from time to time in one
or more transactions, including negotiated transactions, at fixed public
offering prices or at varying prices determined by the underwriters at the time
of sale. Securities may be offered to the public either through underwriting
syndicates represented by managing underwriters or directly by one or more
underwriters. If any underwriter or underwriters are utilized in the sale of
securities, unless otherwise indicated in the applicable prospectus supplement
and/or other offering material, the obligations of the underwriters are subject
to certain conditions precedent, and the underwriters will be obligated to
purchase all such securities if they purchase any of them.
If
a dealer is utilized in the sale of the securities in respect of which this
prospectus is delivered, we will sell such securities, and any selling
stockholder will sell shares of our common stock to the dealer, as principal.
The dealer may then resell such securities to the public at varying prices to
be determined by such dealer at the time of resale. Transactions through
brokers or dealers may include block trades in which brokers or dealers will
attempt to sell shares as agent but may position and resell as principal to
facilitate the transaction or in cross trades, in which the same broker or
dealer acts as agent on both sides of the trade. Any such dealer may be deemed
to be an underwriter, as such term is defined in the Securities Act, of the
securities so offered and sold. In addition, any selling stockholder may sell
shares of our common stock in ordinary brokerage transactions or in
transactions in which a broker solicits purchases.
Offers
to purchase securities may be solicited directly by us or any selling
stockholder and the sale thereof may be made by us or any selling stockholder
directly to institutional investors or others, who may be deemed to be
underwriters within the meaning of the Securities Act of 1933 with respect to
any resale thereof.
Any
selling stockholders may also resell all or a portion of their shares of our
common stock in transactions exempt from the registration requirements of the
Securities Act in reliance upon Rule 144 under the Securities Act
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provided they meet the criteria and conform to the
requirements of that rule, Section 4(1) of the Securities Act or other
applicable exemptions, regardless of whether the securities are covered by the
registration statement of which this prospectus forms a part.
Agents,
underwriters and dealers may be entitled under relevant agreements with us or
any selling stockholder to indemnification by us against certain liabilities,
including liabilities under the Securities Act or to contribution with respect
to payments which such agents, underwriters and dealers may be required to make
in respect thereof. The terms and conditions of any indemnification or
contribution will be described in the applicable prospectus supplement and/or
other offering material.
We
may pay all expenses incurred with respect to the registration of the shares of
common stock owned by any selling stockholders, other than underwriting fees,
discounts or commissions, which will be borne by the selling stockholders. We
or any selling stockholder may also sell shares of our common stock through
various arrangements involving mandatorily or optionally exchangeable
securities, and this prospectus may be delivered in connection with those
sales.
We
or any selling stockholder may enter into derivative, sale or forward sale
transactions with third parties, or sell securities not covered by this
prospectus to third parties in privately negotiated transactions. If the
applicable prospectus supplement and/or other offering material indicates, in
connection with those transactions, the third parties may sell securities
covered by this prospectus and the applicable prospectus supplement and/or
other offering material, including in short sale transactions and by issuing
securities not covered by this prospectus but convertible into, exchangeable
for or representing beneficial interests in securities covered by this
prospectus, or the return of which is derived in whole or in part from the
value of such securities. The third parties may use securities received under
derivative, sale or forward sale transactions or securities pledged by us or
any selling stockholder or borrowed from us, any selling stockholder or others
to settle those sales or to close out any related open borrowings of stock, and
may use securities received from us or any selling stockholder in settlement of
those transactions to close out any related open borrowings of stock. The third
party in such sale transactions will be an underwriter and will be identified
in the applicable prospectus supplement (or a post-effective amendment) and/or
other offering material.
Additionally,
any selling stockholder may engage in hedging transactions with broker-dealers
in connection with distributions of shares or otherwise. In those transactions,
broker-dealers may engage in short sales of shares in the course of hedging the
positions they assume with such selling stockholder. Any selling stockholder
also may sell shares short and redeliver shares to close out such short
positions. Any selling stockholder may also enter into option or other transactions
with broker-dealers which require the delivery of shares to the broker-dealer.
The broker-dealer may then resell or otherwise transfer such shares pursuant to
this prospectus. Any selling stockholder also may loan or pledge shares, and
the borrower or pledgee may sell or otherwise transfer the shares so loaned or
pledged pursuant to this prospectus. Such borrower or pledgee also may transfer
those shares to investors in our securities or the selling stockholders
securities or in connection with the offering of other securities not covered
by this prospectus.
Underwriters,
broker-dealers or agents may receive compensation in the form of commissions,
discounts or concessions from us or any selling stockholder. Underwriters,
broker-dealers or agents may also receive compensation from the purchasers of
shares for whom they act as agents or to whom they sell as principals, or both.
Compensation as to a particular underwriter, broker-dealer or agent will be in
amounts to be negotiated in connection with transactions involving shares and
might be in excess of customary commissions. In effecting sales, broker-dealers
engaged by us or any selling stockholder may arrange for other broker-dealers
to participate in the resales.
Any
securities offered other than common stock will be a new issue and, other than
the common stock, which is listed on The Nasdaq Global Select Market, will have
no established trading market. We may elect to list any series of
securities on an exchange, and in the case of the common stock, on any
additional exchange, but, unless otherwise specified in the applicable
prospectus supplement and/or other offering material, we shall not be obligated
to do so. No assurance can be given as to the liquidity of the trading market for
any of the securities.
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Agents,
underwriters and dealers may engage in transactions with, or perform services
for, us or our subsidiaries or any selling stockholder in the ordinary course
of business.
Any
underwriter may engage in overallotment, stabilizing transactions, short
covering transactions and penalty bids in accordance with Regulation M under
the Exchange Act. Overallotment involves sales in excess of the offering size,
which create a short position. Stabilizing transactions permit bids to purchase
the underlying security so long as the stabilizing bids do not exceed a
specified maximum. Short covering transactions involve purchases of the
securities in the open market after the distribution is completed to cover short
positions. Penalty bids permit the underwriters to reclaim a selling concession
from a dealer when the securities originally sold by the dealer are purchased
in a covering transaction to cover short positions. Those activities may cause
the price of the securities to be higher than it would otherwise be. If
commenced, the underwriters may discontinue any of the activities at any time.
An underwriter may carry out these transactions on The Nasdaq Global Select
Market, in the over-the-counter market or otherwise.
The
place and time of delivery for securities will be set forth in the accompanying
prospectus supplement and/or other offering material for such securities.
- 26 -
Table of Contents
L
EGAL MATTERS
The
validity of the securities offered by this prospectus will be passed upon for
us by Foley & Lardner LLP. The validity
of the securities offered by this prospectus will be passed upon for any
underwriters or agents by counsel named in the applicable prospectus
supplement. The opinions of Foley & Lardner LLP and counsel for any
underwriters or agents may be conditioned upon and may be subject to
assumptions regarding future action required to be taken by us and any
underwriters, dealers or agents in connection with the issuance of any
securities. The opinions of Foley & Lardner LLP and counsel for any
underwriters or agents may be subject to other conditions and assumptions, as
indicated in the prospectus supplement.
E
XPERTS
The
financial statements of MAKO Surgical Corp. appearing in MAKO Surgical Corp.s
Annual Report (Form 10-K) for the year ended December 31, 2011, and the
effectiveness of MAKO Surgical Corp.s internal control over financial
reporting as of December 31, 2011, have been audited by Ernst & Young LLP,
independent registered public accounting firm, as set forth in their reports
thereon, included therein, and incorporated herein by reference. Such financial
statements are, and audited financial statements to be included in subsequently
filed documents will be, incorporated herein in reliance upon the reports of
Ernst & Young LLP pertaining to such financial statements and the
effectiveness of our internal control over financial reporting as of the
respective dates (to the extent covered by consents filed with the Securities and
Exchange Commission) given on the authority of such firm as experts in
accounting and auditing.
- 27 -
490,471
Shares
MAKO SURGICAL CORP.
Common Stock
______________
______________
PROSPECTUS SUPPLEMENT
November 14, 2012
______________
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