MBOT - Microbot Medical stock slides on $5M securities offering

Microbot Medical ( NASDAQ: MBOT ) shares fell ~24% Friday morning after the medical device company announced a $5M securities offering priced at-the-market under Nasdaq rules.

The company entered into a definitive agreement with a single institutional investor for the purchase and sale of 1,022,495 shares of its common stock (which includes pre-funded warrants to purchase 240,000 shares of common stock) at a purchase price of $4.89/share of common stock (or $4.8899 per pre-funded warrant, which represents the per share offering price for the common stock less the $0.0001 per share exercise price for each pre-funded warrant).

In addition, it will issue to the investor unregistered series A preferred investment options and series B preferred investment options in a concurrent private placement.

The series A preferred investment options to purchase up to 1,022,495 shares of common stock have an exercise price of $4.64 per share and are immediately exercisable for a period of five years following issuance.

The series B preferred investment options to purchase up to 1,022,495 shares of common stock have an exercise price of $4.64 per share and are immediately exercisable for a period of two years following issuance.

Gross proceeds from these offerings are expected to be ~$5M; net proceeds will be used for the continued development, commercialization and regulatory activities for the company's LIBERTY Robotic System, expansion and development of additional applications derived from existing IP portfolio, and for working capital and other general corporate purposes.

The offerings are expected to close on October 25, 2022.

For further details see: