Modular Medical Announces Proposed Public Offering

Rhea-AI Summary

Modular Medical (NASDAQ:MODD), a company specializing in FDA-cleared patch pump technology for insulin delivery, has announced the launch of an underwritten public offering of common stock and pre-funded warrants. The company has granted the underwriter a 30-day option to purchase up to an additional 15% of the aggregate shares or warrants. Titan Partners Group, a division of American Capital Partners, will serve as the sole bookrunner. The offering is being conducted under an effective S-3 shelf registration statement previously filed with the SEC.

Positive

• FDA-cleared patch pump technology already approved
• Potential to raise additional capital for business operations

Negative

• Potential dilution for existing shareholders through new stock offering
• Uncertainty regarding offering size and terms
• Market conditions may affect completion of the offering

Insights

Financial Analyst

This public offering announcement signals significant capital-raising activity for Modular Medical, coming at a important time following their FDA clearance for their patch pump. The offering structure, including pre-funded warrants and a 15% overallotment option, provides flexibility in raising capital while managing dilution. Key considerations include:

• The shelf registration (S-3) indicates the company had anticipated needing additional capital
• The timing suggests a strategic move to capitalize on recent FDA clearance momentum
• The undisclosed offering size creates uncertainty around potential dilution impact
• Pre-funded warrants could help attract institutional investors while providing immediate capital

For a company with a market cap of $68 million, this offering could significantly impact the capital structure. Investors should monitor the final terms and pricing when announced to assess the dilution impact and implied market valuation.

SAN DIEGO, CA / ACCESSWIRE / November 21, 2024 / Modular Medical, Inc. (NASDAQ:MODD) ("Modular Medical"), an insulin delivery technology company with the first FDA-cleared patch pump designed specifically to target all adult "almost-pumpers" with its user-friendly and affordable design, today announced that it has commenced an underwritten public offering (the "offering") of shares of its common stock (or pre-funded warrants to purchase shares of its common stock in lieu thereof). Modular Medical also has granted the underwriter a 30-day option to purchase up to an additional 15% of the aggregate number of shares of its common stock (or pre-funded warrants) sold in the offering. The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed or as to the actual size or terms of the offering. All shares of common stock and pre-funded warrants to be sold in the proposed offering will be sold by Modular Medical.

Titan Partners Group, a division of American Capital Partners, is acting as sole bookrunner for the proposed 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. The securities may be offered only by means of a prospectus. A preliminary prospectus supplement and the accompanying prospectus relating to and describing the terms of the offering have been filed with the SEC. Electronic copies of the preliminary prospectus and, when available, 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, 29^th Floor, New York, New York 10007, by phone at (929) 833-1246 or by email at prospectus@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. Its 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.

All trademarks mentioned herein are the property of their respective owners.

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. 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, including whether or when the offering may be completed, 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

FAQ

What type of offering did Modular Medical (MODD) announce on November 21, 2024?

Modular Medical announced an underwritten public offering of common stock and pre-funded warrants to purchase common stock.

Who is the sole bookrunner for Modular Medical's (MODD) public offering?

Titan Partners Group, a division of American Capital Partners, is acting as the sole bookrunner for the proposed offering.

What option was granted to the underwriter in MODD's public offering?

The underwriter received a 30-day option to purchase up to an additional 15% of the aggregate number of shares or pre-funded warrants sold in the offering.

What is Modular Medical's (MODD) main product focus?

Modular Medical focuses on insulin delivery technology, specifically an FDA-cleared patch pump designed for adult 'almost-pumpers' with user-friendly and affordable features.