LITTLETON, Colo. - Vivos Therapeutics, Inc. (NASDAQ: VVOS), a medical device and technology company currently trading at $4.98, has announced definitive agreements for a registered direct offering of its common stock, alongside a concurrent private placement of short-term warrants. According to InvestingPro data, while the company maintains more cash than debt on its balance sheet, it has been rapidly burning through its cash reserves. The offering involves the sale of 709,220 common shares at $4.935 each, aiming to raise approximately $3.5 million before fees and expenses. The private placement warrants, exercisable at $4.81 per share, could generate an additional $3.4 million if fully exercised. This funding comes as the company faces significant financial challenges, with InvestingPro analysis showing a negative EBITDA of $11.91 million in the last twelve months.
The closing of the offering is expected on or about December 24, 2024, subject to customary closing conditions. H.C. Wainwright & Co. serves as the exclusive placement agent for the transaction.
Vivos plans to allocate the net proceeds for working capital and general corporate purposes. The company's approach to treating sleep-related breathing disorders, such as obstructive sleep apnea (OSA) and snoring, involves non-surgical and non-pharmaceutical treatments. Their proprietary method has been used to treat over 47,000 patients worldwide. Despite challenging market conditions, the company maintains a healthy gross profit margin of 61.8%. For deeper insights into VVOS's financial health and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which includes detailed analysis and valuation metrics.
The common stock is offered under a shelf registration statement that became effective on February 14, 2022. The accompanying prospectus and prospectus supplement will be available on the SEC's website, while the warrants and underlying shares are issued in a private placement and are not registered under securities laws.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities. The information is based on a press release statement from Vivos Therapeutics, Inc.
In other recent news, Vivos Therapeutics reported a 17% increase in total revenue for Q3 2024, reaching $3.9 million. This growth was primarily driven by higher sales of Vivos appliances and services, despite a decrease in myofunctional therapy revenues. The company's operating expenses decreased for the ninth consecutive quarter and cash on hand significantly increased, according to CFO Brad Amman and CEO Kirk Huntsman (NYSE:HUN). However, the net loss for Q3 2024 rose to $2.6 million, mainly due to changes in warrant liability.
In further developments, Vivos Therapeutics held its annual meeting where shareholders voted on several key proposals. All six director nominees were elected to the board for a one-year term expiring at the 2025 annual meeting, and the 2024 Omnibus Equity Incentive Plan was approved. Additionally, the appointment of Moss Adams LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2024, was ratified.
The company is also making strategic changes in its sales and marketing model, including an alliance with Rivas Health, and plans to open two additional locations in Denver by the end of 2024. These are part of Vivos Therapeutics' recent efforts to improve its cost structure and revenue growth.
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