Inspira Announces $3.88 Million Registered Direct Offering

Rhea-AI Summary

Inspira Technologies OXY B.H.N. Ltd. (NASDAQ: IINN) (NASDAQ: IINNW) has entered into a definitive agreement for the issuance and sale of 3,031,250 ordinary shares at a purchase price of $1.28 per share in a registered direct offering. The company will also issue unregistered warrants to purchase up to an aggregate of 3,031,250 ordinary shares at an exercise price of $1.28 per share.

Insights

Financial Analyst

The issuance and sale of ordinary shares, or pre-funded warrants, by Inspira Technologies is a strategic financial move aimed at increasing the company's capital. This action is a common method for companies seeking to fund operations, invest in research and development, or pay off existing debts. The decision to offer shares at a set price of $1.28 indicates a targeted approach to raise a specific amount of capital.

Stakeholders, including current and potential investors, should consider the dilutive effect of such an offering, as it increases the number of shares outstanding, potentially reducing the value of existing shares. However, if the funds are utilized effectively to advance the company's technology and market position, the long-term benefits could outweigh the immediate dilution. The issuance of warrants, which are exercisable at the same price as the shares, introduces a future possibility of additional capital influx but also further dilution if exercised.

It is crucial for investors to evaluate the company's growth prospects, the potential market for its life support technology and its current financial health. The success of this offering and the subsequent use of funds will be a significant indicator of the company's ability to execute its business strategy and innovate within the medical technology sector.

Medical Technology Analyst

Inspira Technologies' focus on developing alternatives to traditional mechanical ventilators places it within a highly specialized segment of the medical technology industry. The need for advanced life support systems has been underscored by recent global health crises, highlighting the importance of innovation in this field.

Investors should assess the clinical and regulatory pathways that Inspira must navigate to bring its products to market. The capital raised through this offering will likely support these efforts, which include clinical trials, regulatory approvals and scaling up manufacturing capabilities. The company's ability to meet these milestones will be critical to its success and, consequently, to the return on investment for stakeholders.

Understanding the competitive landscape is also vital. The medical technology field is highly competitive, with established players and stringent regulatory requirements. Inspira's progress should be monitored in the context of these industry-specific challenges and opportunities.

Industry Analyst

The healthcare and life support technology sectors are rapidly evolving, with significant investment flowing into research and development of new technologies. Inspira Technologies' entry into a definitive agreement for the sale of shares and warrants suggests confidence in its future prospects and a commitment to securing the necessary capital to remain competitive.

An industry analysis would consider the potential market size for Inspira's innovative ventilator technology, the competitive advantages it may offer and the adoption rate within healthcare facilities. The impact of this capital raise on Inspira's operational capabilities and market reach is a critical factor for current and future valuation.

As the industry moves towards more advanced and patient-friendly solutions, Inspira's strategic initiatives, funded through this capital increase, could position it favorably if the technology proves to be superior to existing options. However, the risk associated with the development and adoption of new medical technologies must be factored into any investment decision.

RA'ANANA, Israel, Dec. 26, 2023 /PRNewswire/ -- Inspira Technologies OXY B.H.N. Ltd. (NASDAQ: IINN) (NASDAQ: IINNW)  (the "Company" or "Inspira"), a pioneer in life support technology with a vision to supersede traditional mechanical ventilators, today announced that it has entered into a definitive agreement for the issuance and sale of an aggregate of 3,031,250 of ordinary shares (or pre-funded warrants in lieu thereof) at a purchase price of $1.28 per share (or per pre-funded warrants in lieu thereof) in a registered direct offering. The Company has also agreed to issue in a concurrent private placement unregistered warrants to purchase up to an aggregate of 3,031,250 ordinary shares. The warrants will have an exercise price of $1.28 per share, will be immediately exercisable upon issuance, and will expire three and one-half years from the date of issuance. The offering is expected to close on or about December 28, 2023, subject to the satisfaction of customary closing conditions.

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

The gross proceeds to Inspira from the offering are expected to be $3.88 million, before deducting the placement agent's fees and other offering expenses payable by the Company. Inspira currently intends to use the net proceeds from the offering for working capital and general corporate purposes.

The securities described above (excluding the unregistered warrants and the ordinary shares underlying the unregistered warrants) are being offered and sold by the Company in a registered direct offering pursuant to a "shelf" registration statement on Form F-3 (Registration No. 333-266748), including a base prospectus, previously filed with the Securities and Exchange Commission (SEC) on August 10, 2022 and declared effective by the SEC on August 18, 2022. The offering of such securities in the registered direct offering are being made only by means of a prospectus supplement that forms a part of the registration statement. A final prospectus supplement and an accompanying base prospectus relating to the registered direct offering will be filed with the SEC and will be available on the SEC's website located at http://www.sec.gov. Electronic copies of the final prospectus supplement and accompanying base prospectus may also be obtained, when available, by contacting H.C. Wainwright & Co., LLC at 430 Park Avenue, 3rd Floor, New York, NY 10022, by phone at (212) 856-5711 or e-mail at placements@hcwco.com.

The unregistered warrants described above are being offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the "Act"), and Regulation D promulgated thereunder and, along with the ordinary shares underlying such warrants, have not been registered under the Act, or applicable state securities laws. Accordingly, the warrants and the underlying ordinary shares may not be reoffered or resold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Act and such applicable state securities laws.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.

Inspira Technologies OXY B.H.N. Ltd.

Inspira Technologies is leading the way in transforming life-support care. Its innovative solutions are paving the way for direct blood oxygenation, bypassing the lungs, and potentially reducing the need for traditional mechanical ventilation. Beyond this, the Company is committed to advancing blood circulation technology and incorporating AI-driven monitoring systems. These advancements are part of its strategy to offer more patient-focused, data-informed care. The integration of these technologies signifies the potential to enhance patient outcomes and streamline hospital operations, marking a new era in respiratory care.

For more information, please visit our corporate website:

Inspira - Breathing. Empowered.

Forward-Looking Statement Disclaimer

This press release contains express or implied forward-looking statements under U.S. Federal securities laws. These forward-looking statements and their implications are based only on the current expectations of the management of the Company. They are subject to several factors and uncertainties that could cause results to differ materially from those described in the forward-looking statements, such as market and other conditions. For example, the Company uses forward-looking statements when it discusses the completion of the offering, the satisfaction of customary closing conditions related to the offering and the anticipated use of proceeds therefrom. Except as otherwise required by law, the Company undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or the occurrence of unanticipated events. More detailed information about the risks and uncertainties affecting the Company is contained under the heading "Risk Factors" in the Company's annual report on Form 20-F for the fiscal year ended December 31, 2022, filed with the SEC, which is available on the SEC's website, www.sec.gov.

For more details:

Public Relations Manager
Adi Shmueli
Inspira Technologies
info@inspirao2.com
+972-9-9664485

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SOURCE Inspira Technologies

FAQ

What is the latest announcement from Inspira Technologies OXY B.H.N. Ltd. (NASDAQ: IINN)?

Inspira Technologies OXY B.H.N. Ltd. has entered into a definitive agreement for the issuance and sale of 3,031,250 ordinary shares at a purchase price of $1.28 per share in a registered direct offering.

What is the purchase price of the ordinary shares in the offering by Inspira Technologies OXY B.H.N. Ltd. (NASDAQ: IINN)?

The purchase price of the ordinary shares is $1.28 per share.

What are the details of the unregistered warrants being issued by Inspira Technologies OXY B.H.N. Ltd. (NASDAQ: IINN)?

The company will issue unregistered warrants to purchase up to an aggregate of 3,031,250 ordinary shares at an exercise price of $1.28 per share.

When is the expected closing date of the offering by Inspira Technologies OXY B.H.N. Ltd. (NASDAQ: IINN)?

The offering is expected to close on or