Modular Medical Announces Proposed Public Offering

Rhea-AI Summary

Modular Medical, Inc. (Nasdaq: MODD) has announced the commencement of an underwritten public offering of shares of its common stock or pre-funded warrants. The company also plans to grant the underwriter a 30-day option to purchase additional shares. The offering is subject to market conditions and Modular Medical will sell all the shares. Titan Partners Group is the sole book-running manager for the offering. The offering is made under an effective shelf registration statement and may only be offered through a prospectus.

Insights

Financial Analyst

Modular Medical's decision to commence an underwritten public offering could be indicative of the company's strategic move to raise capital for further development and commercialization of its insulin pump technology. This is a significant event, as the funds raised through the offering could potentially accelerate the company's growth trajectory and expand its market share in the medical device sector. However, it's crucial to scrutinize the terms of the offering, as they can affect the stock's dilution rate and, subsequently, the share value.

Investors should analyze the company's use of proceeds statement for insights into how the capital will be deployed. If the funds are earmarked for research and development or market expansion, this could be a positive signal for future growth. Conversely, if the proceeds are intended to pay off debt or cover operational losses, this might raise concerns about the company's financial health.

Market Research Analyst

The insulin delivery technology market is competitive and rapidly evolving, with a constant demand for more user-friendly and cost-effective solutions. Modular Medical's positioning as a company seeking to launch next-generation insulin pump technology suggests a focus on innovation and market differentiation. The success of the offering and the company's subsequent performance will depend on its ability to deliver on its promises and capture market share from established players.

It is essential to evaluate the market's response to Modular Medical's preliminary prospectus, as it can provide insights into investor confidence and the perceived value of the company's technology. A strong underwriter like Titan Partners Group could lend credibility to the offering, but investor sentiment will ultimately be driven by Modular Medical's potential to disrupt the market and deliver financial returns.

Legal Expert

The offering's compliance with SEC regulations, through the use of an effective shelf registration statement, is a key legal aspect that provides a framework for the transaction. The shelf registration process allows for a more expedited offering, subject to market conditions. It's important for investors to understand that while this facilitates quicker access to capital, the market's volatility can impact the timing and success of the offering.

Moreover, the legal stipulation that the offering cannot occur in jurisdictions where it would be unlawful prior to registration or qualification under local securities laws is a standard regulatory safeguard. This ensures that the offering adheres to the varying securities regulations across states and jurisdictions, which can affect the availability of the securities to potential investors.

SAN DIEGO, CA / ACCESSWIRE / February 15, 2024 / Modular Medical, Inc. (Nasdaq:MODD) ("Modular Medical"), a development stage insulin delivery technology company seeking to launch the next generation of easy to use and affordable insulin pump technology, 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 intends to grant 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). 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 of the 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 book-running manager 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 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. Our 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. 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. 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

FAQ

What is the ticker symbol for Modular Medical, Inc.?

The ticker symbol for Modular Medical, Inc. is MODD.

What type of offering did Modular Medical, Inc. announce?

Modular Medical, Inc. announced an underwritten public offering of shares of its common stock or pre-funded warrants.

Who is acting as the sole book-running manager for the proposed offering?

Titan Partners Group, a division of American Capital Partners, is acting as the sole book-running manager for the proposed offering.

How can interested parties obtain copies of the preliminary prospectus for the offering?

Interested parties can obtain electronic copies of the preliminary prospectus from the SEC's website or by contacting Titan Partners Group LLC.

Is the offering subject to any specific conditions?

The offering is subject to market conditions and other factors, and there is no assurance on the completion, size, or terms of the offering.