ReWalk Robotics (NASDAQ:RWLK) stock fell Monday in the wake of news released late last week.
The Israel-based company, with offices in Massachusetts, announced that it has entered into securities purchase agreements with certain institutional and other accredited investors to raise $40.0 million through the issuance of 10,921,502 ordinary shares and warrants to purchase up to 5,460,751 ordinary shares, at a purchase price of $3.6625 per share and associated warrant, in a private placement priced "at-the-market" under NASDAQ rules.
The warrants will have a term of five and one-half years, be exercisable immediately following the issuance date and have an exercise price of $3.60 per ordinary share.
H.C. Wainwright & Co., LLC acted as the sole placement agent for the offering.
The Company intends to use the net proceeds for: (i) sales, marketing and reimbursement expenses related to market development activities of its ReStore and Personal 6.0 devices, broadening third-party payor and CMS coverage for its ReWalk Personal device, and commercializing its new product lines added through distribution agreements; (ii) research and development of its lightweight exo-suit technology for potential home personal health utilization for multiple indications and future generation designs for its spinal cord injury device; (iii) routine product updates; and (iv) general corporate purposes, including working capital needs.
The closing of the private placement is expected to occur on or about February 23, subject to satisfaction of customary closing conditions.
Shares in RWLK began Monday down 62 cents, or 15.1%, to $3.50.
