Rewalk Robotics Ltd (NASDAQ: RWLK) jumped 10% after a recent fall after announcing an agreement to issue $32.5 million worth of its common shares and warrants through at-the-market registered direct offering. The company will issue around 16.014 million ordinary shares for purchase at $2.035 per share at a discount from Friday’s closing at $2.01. Besides the registered direct offering, the company also issued unregistered warrants to investors for the purchase of a total of 8,006,759 common shares in a concurrent placement.
The company expects gross proceeds of $32.5 million. It will use net proceeds as sales, marketing, and reimbursement expenses connected to market development initiatives of its Personal 6.0 and ReStore devices, expanding third-party providers and CMS cover for ReWalk Personal devices, and marketing new products.
Also, the company will use proceeds for R&D of the lightweight exo-suit tech for possible home individual health use for several indications and future designs generation for ReWalk’s spinal cord injury product. Therefore, in the coming weeks, investors should watch RWLK.
Market Reaction:
On Monday, RWLK stock surged 9.70% at $1.4700 with more than 5 million shares, compared to its average volume of 11 million shares. The stock has moved within a range of $1.3100 – 1.5000 after opening the trade at $1.3400.
