HINGHAM, Mass. - Microbot Medical Inc. (NASDAQ:MBOT), a company specializing in micro-robotic medical technologies, has announced a new financing round on Monday. The company has entered into agreements for a registered direct offering and a concurrent private placement expected to close on or about Tuesday.
In the registered direct offering, Microbot Medical will sell 1,566,669 shares of common stock at $1.50 per share. Alongside this, the company will issue series F preferred investment options in a private placement. These options, allowing the purchase of up to 3,133,338 common shares at the same price, are immediately exercisable for two years following their issuance.
The combined gross proceeds from both the stock sale and the investment options are projected to be approximately $2.35 million, before subtracting placement agent fees and other expenses. H.C. Wainwright & Co. is serving as the exclusive placement agent for the offerings.
Microbot Medical intends to allocate the net proceeds to support the development and commercialization of its LIBERTY® Robotic System, expand its intellectual property portfolio applications, and cover general corporate purposes including working capital.
The LIBERTY® Endovascular Robotic Surgical System is a pre-clinical platform designed to enhance endovascular procedures by eliminating the need for bulky equipment, reducing radiation exposure, and easing physician strain. The company believes the system's remote operation could democratize endovascular interventional procedures.
The common stock offering is being made under a previously filed and effective SEC registration statement, while the series F preferred investment options and the shares they represent have not been registered and are subject to restrictions on their sale in the U.S.
This funding event is subject to customary closing conditions, with the offerings' completion anticipated on the following day. The information in this report is based on a press release statement from Microbot Medical.
InvestingPro Insights
As Microbot Medical Inc. (NASDAQ:MBOT) looks to bolster its financial position through a new financing round, investors are evaluating the company's financial health and future prospects.
According to InvestingPro data, Microbot Medical has a market capitalization of $21.11 million, indicating the company's size in the competitive medical technology market. Despite the challenges, the company's balance sheet reflects a strategic position where liquid assets surpass short-term obligations, providing some financial flexibility in the near term.
The company's P/E ratio stands at -2.27, with an adjusted P/E ratio for the last twelve months as of Q1 2024 at -1.55, reflecting investor sentiment about its earnings potential. The negative figures suggest that the company is not currently profitable, a view that is corroborated by InvestingPro Tips, which note that analysts do not anticipate the company will be profitable this year and that it has not been profitable over the last twelve months. Moreover, with a cash burn that is quickly depleting its reserves, Microbot Medical's financial management will be crucial in the coming months.
Investors considering the stock will find that Microbot Medical holds more cash than debt, which could be a silver lining for those concerned about the company's financial runway. However, the company's weak gross profit margins and lack of dividend payments might give pause to those looking for immediate returns or income from their investment.
For a deeper dive into Microbot Medical's financials and to access additional InvestingPro Tips, interested parties can visit Investing.com/pro/MBOT. There are currently 7 additional tips available, which can provide further guidance on whether MBOT is a suitable addition to an investment portfolio. Remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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