Modular Medical Announces Closing of $10 Million Public Offering
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Insights
The closing of Modular Medical's underwritten public offering, resulting in gross proceeds of approximately $10 million, is a significant liquidity event that merits close examination. The pricing at $1.10 per share, alongside the participation of key management and board members, suggests a vote of confidence in the company's future prospects. The capital raised is earmarked for operations, working capital and capital expenditures, which could indicate an aggressive growth strategy or a need to fund ongoing research and development. Investors should consider the dilutive effect of the new shares on existing shareholders, as well as the potential benefits of the additional capital in driving the company's growth in the competitive insulin pump market.
It's also noteworthy that the company has allowed for an over-allotment option, which could lead to further dilution if exercised but also provides a buffer for additional capital. The involvement of Titan Partners Group as the sole book-running manager suggests that Modular Medical sought to leverage established financial networks to ensure the offering's success. The company's decision to proceed with a shelf registration indicates a premeditated strategy to access capital markets efficiently, which may be viewed favorably by investors looking for companies with proactive financing strategies.
The insulin pump market is characterized by technological advancements and growing demand due to the rising prevalence of diabetes globally. Modular Medical's focus on developing easy-to-use and affordable insulin pump technology positions it within a niche that caters to cost-conscious consumers and healthcare providers. The successful closure of the public offering provides Modular Medical with the financial resources to potentially accelerate their product development and commercialization efforts.
However, the market for insulin delivery devices is highly competitive, with several large and established players. The effectiveness of Modular Medical's use of the proceeds in creating a competitive product will be crucial for its long-term success. Investors should monitor the company's R&D progress and any strategic partnerships or regulatory milestones that could enhance its market position. The pricing strategy and affordability of their insulin pump technology could also disrupt the market if it meets unaddressed consumer needs.
For a development stage biotechnology company like Modular Medical, securing funding is critical for sustaining operations and advancing product development. The funds from this offering could support pivotal clinical trials, regulatory submissions, or the scaling of manufacturing processes, all of which are capital-intensive stages. The involvement of existing institutional investors and company insiders in the offering suggests confidence in the company's strategic direction and its management's execution capabilities.
Investors should evaluate the company's pipeline and the potential market size for its insulin pump technology. Given the chronic nature of diabetes and the need for lifelong management, innovations that offer ease of use and cost-effectiveness can have a substantial impact on patient adherence and outcomes. The long-term implications of this funding event hinge on Modular Medical's ability to navigate the regulatory landscape and successfully bring its product to market, which would be a key driver for future revenue streams and shareholder value.
SAN DIEGO, CA / ACCESSWIRE / February 21, 2024 / Modular Medical, Inc. (NASDAQ:MODD) ("Modular Medical" or the "Company"), a development stage insulin delivery technology company seeking to launch the next generation of easy to use and affordable insulin pump technology, announced today the closing of its previously announced underwritten public offering (the "offering") of 9,090,910 shares of its common stock, led by Manchester Explorer, L.P., which is managed by Jeb Besser, Modular Medical's Chief Executive Officer, and Morgan Frank, a member of the Company's board of directors, and other existing institutional investors. Each share of common stock was sold at a price to the public of
Titan Partners Group, a division of American Capital Partners, acted as sole book-running manager for the offering.
The offering is being made pursuant to an effective "shelf" registration statement on Form S-3 (File No. 333-264193) previously filed with the Securities and Exchange Commission (the "SEC") on April 8, 2022, as amended on April 15, 2022, and declared effective by the SEC on April 19, 2022. A final prospectus supplement and the accompanying prospectus relating to and describing the terms of the offering were filed with the SEC. Electronic copies of the final prospectus supplement and the accompanying prospectus relating to the offering may be obtained by visiting the SEC's website at www.sec.gov or by contacting Titan Partners Group LLC, a division of American Capital Partners, LLC, 4 World Trade Center, 29th Floor, New York, New York 10007, by phone at (929) 833-1246 or by email at info@titanpartnersgrp.com.
This press release does not constitute an offer to sell or the 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 jurisdiction.
About Modular Medical
Modular Medical, Inc. (NASDAQ:MODD) is a development-stage medical device company that intends to launch the next generation of insulin delivery technology. Using its patented technologies, the Company seeks to eliminate the tradeoff between complexity and efficacy, thereby making top quality insulin delivery both affordable and simple to learn. The Company's mission is to improve access to the highest standard of glycemic control for people with diabetes taking it beyond "superusers" and providing "diabetes care for the rest of us."
Modular Medical was founded by Paul DiPerna, a seasoned medical device professional and microfluidics engineer. Prior to founding Modular Medical, Mr. DiPerna was the founder (in 2005) of Tandem Diabetes and invented and designed its t:slim insulin pump. More information is available at https://modular-medical.com.
Forward-Looking Statements
This press release contains forward-looking statements that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified through the use of words such as may," "might," "will," "intend," "should," "could," "can," "would," "continue," "expect," "believe," "anticipate," "estimate," "predict," "outlook," "potential," "plan," "seek," and similar expressions and variations or the negatives of these terms or other comparable terminology, including include the Company's intended use of the offering proceeds. Such forward-looking statements are subject to risks, trends, and uncertainties that could cause actual results to be materially different from the forward-looking statements contained in this press release. These factors include, but are not limited to, whether Modular Medical can successfully develop its proprietary technologies, whether the market will accept Modular Medical's products and services, whether the Company will be issued additional patents for its proprietary technology, Modular Medical's ability to obtain regulatory clearance for its MODD1 product, anticipated consumer demand for its products, whether Modular Medical can successfully manufacture its products at high volumes, general economic, industry or political conditions in the United States or internationally as well as other risk factors and business considerations described in Modular Medical's SEC filings, including its annual report on Form 10-K. Any forward-looking statements in this press release should be evaluated in light of these important risk factors. In addition, any forward-looking statements included in this press release represent Modular Medical's views only as of the date of its publication and should not be relied upon as representing its views as of any subsequent date. Modular Medical assumes no obligation to update these forward-looking statements, except as required by law.
Contact Information
Jeb Besser
Chief Executive Officer
Modular Medical, Inc.
+1 (617) 399-1741
IR@modular-medical.com
SOURCE: Modular Medical, Inc.
View the original press release on accesswire.com
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