Monogram Technologies Launches Continuous Offering of 8.00% Convertible Preferred Stock and Warrants

Rhea-AI Summary

Monogram Technologies announced a continuous public offering of up to $10 million in units, priced at $2.25 per unit. Each unit includes one share of 8.00% Series D Redeemable Convertible Cumulative Preferred Stock and a warrant to purchase one share of common stock at $3.375 per share. The offering is expected to result in net proceeds of approximately $9.25 million if all units are sold, after estimated commissions and expenses. The Series D Preferred Stock pays an annual dividend of $0.18 per share and is convertible into common stock. The company may redeem the preferred stock at a premium, which declines over time. Digital Offering, is acting as the sole managing selling agent, with the offering being conducted on a "reasonable best efforts" basis.

Positive

• Monogram Technologies expects $9.25 million in net proceeds from the public offering if all units are sold.
• The 8.00% dividend yield on the Series D Preferred Stock offers an attractive return for investors.
• The preferred stock is convertible into common shares, providing potential for capital appreciation.

Negative

• There is no public market for the Series D Preferred Stock or warrants, limiting liquidity for investors.
• The company does not plan to list the Series D Preferred Stock or warrants on any national securities exchange.

Financial Analyst

Monogram Technologies' announcement to issue $10 million in convertible preferred stock and warrants is noteworthy for several reasons. Firstly, the 8.00% annual yield on the preferred stock is enticing for income-focused investors, particularly in a low-interest-rate environment. The dividend's convertibility into common stock provides potential upside if the company's stock appreciates. However, investors should be cautious about the high redemption premium, which starts at 200% and decreases over time. This could limit the stock’s liquidity and put pressure on the company to redeem shares at a higher cost.

The company's decision to conduct this offering through a continuous public offering platform is innovative but not without risks. While it democratizes access to investment opportunities, the lack of a public market for the Series D Preferred Stock and warrants could deter liquidity-seeking investors. The 'reasonable best efforts' basis by Digital Offering also implies there's no guarantee that all units will be sold, which might affect the total funds raised.

For retail investors, the main appeal lies in the high yield and the potential for stock conversion, but they should be aware of the illiquidity risks and redemption terms. The absence of a listing on a national exchange could pose significant liquidity risks.

Market Research Analyst

Monogram Technologies operates in a high-growth sector, focusing on AI-driven robotics for orthopedic surgery. This niche market is expected to expand significantly, given the aging population and increasing demand for advanced surgical solutions. The capital raised through this offering could fuel R&D and market penetration efforts, potentially accelerating the company's growth trajectory.

However, the decision not to list the Series D Preferred Stock and warrants on any national exchange limits the secondary market's liquidity, which could dissuade some investors. The strategic rationale behind issuing convertible preferred stock and warrants seems to be to attract both income-focused and growth-oriented investors. Nevertheless, the lack of an established trading market for these securities could impact investor sentiment.

Retail investors should weigh the potential growth opportunities against the liquidity risks. The offering's structure could be more attractive to those looking for stable dividends and are comfortable with potential stock appreciation without immediate liquidity.

AUSTIN, TX / ACCESSWIRE / July 9, 2024 / Monogram Technologies Inc. (NASDAQ:MGRM) ("Monogram" or the "Company"), an AI-driven robotics company focused on improving human health with an initial focus on orthopedic surgery, announced the launch of a continuous public offering of up to $10,000,000 of units at a public offering price of $2.25 (the "Public Offering"). Each unit consists of one share 8.00% Series D Redeemable Convertible Cumulative Preferred Stock and one warrant to purchase one share of common stock exercisable at $3.375 per share, which will result in net proceeds to the Company of approximately $9.25 million after payment of estimated commissions and offering expenses if all Units are sold.

The shares of the Series D Preferred Stock and the warrants are immediately separable and will be issued and tradeable separately, but will be purchased together. The Series D Preferred Stock pays a $0.18 per share per year dividend at an annual yield of approximately 8.00% and is convertible into one share of the Company's common stock for each share of the Series D Preferred Stock. The dividend is payable in cash or in-kind. The Company has the right to redeem the Series D Preferred Stock at a premium to the public offering price of the units, which declines over time from 200% down to 150% of the offering price. This Public Offering allows any suitable investor to log onto the Monogram Public Offering website at monogramtechnologies.com and with a click of a button, subscribe to the offering.

Digital Offering, LLC ("Digital Offering"), is acting as the sole lead managing selling agent for the Public Offering. The units are being offered by Digital Offering on a "reasonable best efforts" basis. There is no public market for either the Series D Preferred Stock or warrants and the Company does not intend to apply for a listing of either on any national securities exchange. Digital Offering is a member of FINRA and SIPC. The Company may terminate this Public Offering at any time.

"We are excited to offer our loyal followers and shareholders the opportunity to participate in a Unit offering typically reserved for Wall Street institutional investors," said Benjamin Sexson, CEO of Monogram Technologies, Inc.

The offering is being conducted as a public offering pursuant to the prospectus supplement dated July 9, 2024 and the accompanying prospectus dated June 3, 2024, which have been filed with the Securities and Exchange Commission ("SEC"). These documents contain this and other information about the Company, the Series D Preferred Stock, and the warrants and should be read carefully before investing. The information in the prospectus supplement, the accompanying prospectus and this press release is not complete and may be changed. The prospectus supplement, the accompanying prospectus and this press release are not offers to sell these securities and are not soliciting an offer to buy these securities in any state where such offer or sale is not permitted.

A shelf registration statement relating to these securities is on file with and has been declared effective by the SEC. The offering may be made only by means of a prospectus and a related prospectus supplement, copies of which may be obtained at monogramtechnologies.com or by visiting EDGAR on the SEC's website at:

https://www.sec.gov/Archives/edgar/data/1769759/000110465924078410/tm2418841d1_424b5.htm.

About Monogram Technologies Inc.

Monogram Technologies (NASDAQ:MGRM) is an AI-driven robotics company focused on improving human health, with an initial focus on orthopedic surgery. The Company is developing a product solution architecture to enable patient-optimized orthopedic implants at scale by combining 3D printing, advanced machine vision, AI and next-generation robotics.

Monograms mBôs precision robotic surgical system is designed to autonomously execute optimized paths for high-precision insertion of its FDA-cleared mPress press-fit implants. The goal is well balanced better-fitting bone sparing knee replacements. The Company initially intends to produce and market robotic surgical equipment and related software, orthopedic implants, tissue ablation tools, navigation consumables, and other miscellaneous instrumentation necessary for reconstructive joint replacement procedures. Other clinical and commercial applications for the mBôs with mVision navigation are also being explored.

Monogram has obtained FDA clearance for mPress implants. Monogram currently plans to apply for 510(k) clearance for its robotic products in the second half of 2024. The Company is required to obtain FDA clearance before it can market its products. Monogram cannot estimate the timing or assure the ability to obtain such clearances.

The Company believes that its mBôs precision robotic surgical assistants, which combine AI and novel navigation methods (mVision), will enable more personalized knee implants for patients, resulting in well balanced better-fitting knee replacements with bone sparing implants. Monogram anticipates that there may be other clinical and commercial applications for its navigated mBôs precision robot and mVision navigation.

To learn more, visit monogramtechnologies.com.

Forward-Looking Statements

This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. For example, the Company's statement regarding the Company's proposed use of net proceeds is a forward-looking statement. Forward-looking statements, other than statements of historical fact, are highly likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under our control, and that the Company may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from any forward-looking statements as a result of a number of factors, including those described in the prospectus and the Company's other filings with the SEC. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

Investor Relations

Chris Tyson
Executive Vice President
MZ North America
Direct: 949-491-8235
MGRM@mzgroup.us

SOURCE: Monogram Technologies Inc.

View the original press release on accesswire.com

FAQ

What are the details of Monogram Technologies' latest public offering?

Monogram Technologies is offering up to $10 million in units at $2.25 per unit, each containing one share of 8.00% Series D Preferred Stock and a warrant to purchase one common share at $3.375.

What is the dividend yield on Monogram Technologies' Series D Preferred Stock?

The Series D Preferred Stock pays an annual dividend of $0.18 per share, yielding approximately 8.00%.

What is the conversion feature of Monogram Technologies' Series D Preferred Stock?

Each share of Series D Preferred Stock can be converted into one share of Monogram's common stock.

Who is managing the public offering for Monogram Technologies?

Digital Offering, is the sole managing selling agent for Monogram Technologies' public offering.

Will Monogram Technologies' Series D Preferred Stock and warrants be listed on an exchange?

No, Monogram Technologies does not intend to list the Series D Preferred Stock or warrants on any national securities exchange.

How much does Monogram Technologies expect to net from the public offering?

Monogram Technologies expects to net approximately $9.25 million from the public offering if all units are sold, after estimated commissions and expenses.