Microbot Medical Closes $8.6 Million Registered Direct Offering

Rhea-AI Summary

Microbot Medical (Nasdaq: MBOT) has successfully closed its previously announced registered direct offering, raising $8.6 million in gross proceeds. The offering included 3,788,550 shares of common stock priced at $2.27 per share. Additionally, in a concurrent private placement, the company issued unregistered short-term series H preferred investment options to purchase up to 7,577,100 shares at $2.10 per share, exercisable immediately for two years.

The net proceeds will fund the continued development, commercialization, and regulatory activities for the LIBERTY® Robotic System, expand applications from existing IP portfolio, and provide working capital. H.C. Wainwright & Co. served as the exclusive placement agent for the offerings.

Positive

• Secured $8.6 million in gross proceeds through equity offering
• Funds allocated for LIBERTY® Robotic System development and commercialization
• Investment options provide potential for additional capital through exercise

Negative

• Dilution of existing shareholders through new share issuance
• Offering priced at $2.27, with options at $2.10, indicating potential downward pressure on share price
• Additional dilution possible if preferred investment options are exercised

Insights

Financial Analyst

This $8.6 million capital raise through a registered direct offering represents a significant financial move for Microbot Medical, but warrants careful analysis given the company's micro-cap status ($31.6 million market cap). The offering price of $2.27 per share and the concurrent issuance of warrants with a $2.10 exercise price suggests a complex financing structure designed to attract investors while potentially diluting existing shareholders.

The additional warrants for up to 7,577,100 shares at $2.10 could lead to further dilution if exercised, but also provides potential upside for warrant holders and additional future capital for Microbot if exercised. The company's focus on using proceeds for the LIBERTY® Robotic System development and commercialization indicates a strategic allocation toward their core product, which is important for their growth trajectory.

The immediate dilution from the 3,788,550 new shares will impact earnings per share, but the capital injection strengthens their balance sheet and provides runway for key developmental milestones. For a company of this size, securing institutional backing through H.C. Wainwright adds credibility to the raise, though the at-market pricing suggests premium pricing power.

Medical Technology Analyst

The capital infusion comes at a critical juncture for Microbot's LIBERTY® Robotic System development. In the competitive medical robotics space, $8.6 million represents a modest but meaningful amount for advancing regulatory activities and commercialization efforts. The allocation of funds toward expanding applications from their IP portfolio suggests a strategic approach to building a broader technology platform rather than remaining single-product focused.

For context, medical device development and commercialization typically requires substantial capital, particularly in the robotics segment where regulatory pathways are complex and market entry barriers are high. This funding provides Microbot operational runway, but they may need additional capital raises depending on their development timeline and regulatory progress. The company's ability to secure this financing despite challenging market conditions for small-cap medical technology companies demonstrates some investor confidence in their technology potential.

BRAINTREE, Mass., Jan. 10, 2025 (GLOBE NEWSWIRE) -- Microbot Medical Inc. (Nasdaq: MBOT) today announced the closing of its previously announced registered direct offering priced at-the-market under Nasdaq rules for the purchase and sale of 3,788,550 shares of the Company’s common stock at a purchase price of $2.27 per share of common stock. In addition, in a concurrent private placement, the Company issued unregistered short-term series H preferred investment options. The short-term series H preferred investment options to purchase up to 7,577,100 shares of common stock have an exercise price of $2.10 per share and are immediately exercisable following issuance for a period of two years thereafter.

H.C. Wainwright & Co. acted as the exclusive placement agent for the offerings.

The gross proceeds to the Company from the offerings were approximately $8.6 million, before deducting the placement agent’s fees and other offering expenses payable by the Company. The Company intends to use the net proceeds from the offerings for the continued development, commercialization and regulatory activities for the Company’s LIBERTY^® Robotic System, expansion and development of additional applications derived from the Company’s existing IP portfolio, and for working capital and other general corporate purposes.

The shares of common stock described above (but not the short-term series H preferred investment options issued in the concurrent private placement or the shares of common stock underlying such short-term series H preferred investment options) were offered by the Company pursuant to a “shelf” registration statement on Form S-3 (File No. 333-275634) previously filed with the Securities and Exchange Commission (the “SEC”) and declared effective by the SEC on December 4, 2023. The offering of the shares of common stock was made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. A final prospectus supplement and accompanying prospectus relating to the registered direct offering were filed with the SEC. Electronic copies of the final prospectus supplement and accompanying prospectus may be obtained on the SEC’s website at http://www.sec.gov or 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 short-term series H preferred investment options described above were issued in a concurrent private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and Regulation D promulgated thereunder and, along with the shares of common stock underlying the short-term series H preferred investment options, were not registered under the Securities Act, or applicable state securities laws. Accordingly, the short-term series H preferred investment options and underlying shares of common stock may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities 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 other 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 other jurisdiction.

About Microbot Medical
Microbot Medical Inc. (NASDAQ: MBOT) is a pre-commercial stage medical technology company with a vision to improve the quality of care for millions of patients and providers globally. The Company has developed the world’s first single-use, fully disposable endovascular robotic system, which aims to eliminate traditional barriers to accessing advanced robotic systems.

Further information about Microbot Medical is available at http://www.microbotmedical.com.

Safe Harbor
Statements to future financial and/or operating results, future growth in research, technology, clinical development, commercialization and potential opportunities for Microbot Medical Inc. and its subsidiaries, along with other statements about the future expectations, beliefs, goals, plans, or prospects expressed by management, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. Any statements that are not historical fact (including, but not limited to statements that contain words such as “will,” “believes,” “plans,” “anticipates,” “expects” and “estimates”) should also be considered to be forward-looking statements. Forward-looking statements involve risks and uncertainties, including, without limitation, the intended use of proceeds from the offerings, the Company’s need for and ability to obtain additional working capital to continue its transition to a commercially focused company, market conditions, risks inherent in the development and/or commercialization of the LIBERTY^® Endovascular Robotic Surgical System, uncertainty in the results of regulatory pathways and regulatory approvals, including whether the FDA will grant 510(k) clearance to commercially market the LIBERTY^® Endovascular Robotic Surgical System in the United States, disruptions resulting from new and ongoing hostilities between Israel and the Palestinians and other neighboring countries, need and ability to obtain future capital, and maintenance of intellectual property rights. Additional information on risks facing Microbot Medical can be found under the heading “Risk Factors” in Microbot Medical’s periodic reports filed with the Securities and Exchange Commission (SEC), which are available on the SEC’s web site at www.sec.gov. Microbot Medical disclaims any intent or obligation to update these forward-looking statements, except as required by law.

Investor Contact:

IR@microbotmedical.com

FAQ

How much did Microbot Medical (MBOT) raise in its January 2024 offering?

Microbot Medical raised $8.6 million in gross proceeds through a registered direct offering priced at $2.27 per share.

What is the exercise price and duration of MBOT's series H preferred investment options?

The series H preferred investment options have an exercise price of $2.10 per share and are exercisable for two years from issuance.

How will Microbot Medical use the proceeds from its January 2024 offering?

The proceeds will fund LIBERTY® Robotic System development, commercialization, regulatory activities, IP portfolio expansion, and working capital.

How many shares did MBOT issue in its January 2024 registered direct offering?

Microbot Medical issued 3,788,550 shares of common stock in the registered direct offering.

What investment options did MBOT issue in the concurrent private placement?

MBOT issued unregistered short-term series H preferred investment options to purchase up to 7,577,100 shares of common stock.