ReWalk Robotics Announces $32.5 Million Registered Direct Offering

ReWalk Robotics Ltd. announced this week in a press release that it has entered into definitive agreements with several institutional investors providing for the issuance of 16,013,518 of the Company’s ordinary shares (or ordinary share equivalents in lieu thereof), at an effective purchase price of $2.035, in a registered direct offering priced at-the-market under Nasdaq Rules.

The company, which develops, manufactures and markets wearable robotic exoskeletons for individuals with lower limb disabilities as a result of spinal cord injury or stroke, has also agreed to issue to the investors unregistered warrants to purchase up to an aggregate amount of 8,006,759 ordinary shares in a concurrent private placement. The offering is expected to close on or about September 29, 2021, subject to satisfaction of customary closing conditions.

H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.

Per the press release, 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 $2.00 per ordinary share.

The gross proceeds from the offering are expected to be approximately $32.5 million and the Company intends to use the net proceeds from the offering for the following purposes: (i) sales, marketing and reimbursement expenses related to market development activities of the Company’s ReStore and Personal 6.0 devices, broadening third-party payor and CMS coverage for the ReWalk Personal device and commercializing its new product lines added through distribution agreements; (ii) research and development of the Company’s lightweight exo-suit technology for potential home personal health utilization for multiple indications and future generation designs for ReWalk’s spinal cord injury device; (iii) routine product updates; and (iv) general corporate purposes, including working capital needs and potential acquisitions of businesses.

At the end of June, ReWalk had $65 million in cash on hand available for its operations, according to its quarterly filing with the U.S. Securities & Exchange Commission.
Shares of the company’s stock had slid 21% in premarket trade on Monday after the news.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.