Movano Health Announces $24 Million Private Placement

Rhea-AI Summary

Movano Health (Nasdaq: MOVE) secures $24 million in a private placement, including a strategic seed investment from a tier-1 medical device company. The financing involves the sale of approximately 45 million units, with each unit comprising one share of common stock and one warrant. The proceeds will be used for working capital and general corporate purposes, expected to fund operations until 2025. Movano Health's CEO, John Mastrototaro, highlights the significance of this investment in advancing the company's innovative healthcare data delivery approach.

Insights

Financial Analyst

The private placement conducted by Movano Health can be considered a strategic financial maneuver, indicative of the company's efforts to secure a robust financial runway. The participation of a tier-1 medical device company as a strategic investor suggests a vote of confidence in Movano Health's market potential and technology. The $24 million raised, supplemented by the company's existing cash reserves, projects an operational solvency extending into 2025. This financial buffer may reassure investors of the company's stability and its capacity to sustain R&D and market expansion without immediate pressure to secure additional funds.

Furthermore, the terms of the placement reveal a unit price of $0.533, with the common stock and warrants priced at $0.4071 and $0.125 respectively. The pricing strategy reflects the current valuation Movano Health and its investors agree upon, which is important for potential future investors evaluating the company's stock. The immediate exercisability of the warrants could lead to future dilution of shares, but also represents a potential for additional capital influx if the company's stock performs well.

Healthcare Industry Analyst

The strategic investment from a leading medical device company into Movano Health underscores the growing interest in health technology, particularly in the wearable medical device sector. Movano Health's focus on delivering medical-grade data to consumers and enterprises aligns with the industry's shift towards personalized healthcare and preventive medicine. The capital infusion is likely to expedite the development of Movano's proprietary technologies, which could position the company as a key player in the competitive landscape of healthcare solutions.

By examining the broader industry context, Movano Health's partnership with an established medical device entity may facilitate future collaborations, potentially expanding its market reach and enhancing product credibility. The investment also reflects a trend where traditional medical device firms are increasingly engaging with innovative startups to stay at the forefront of technological advancements and meet evolving consumer demands.

Market Research Analyst

From a market perspective, the announcement of Movano Health's private placement and the associated strategic investment could influence investor perceptions and stock market performance. The involvement of Movano Health's management and board members in the investment round demonstrates internal confidence in the company's direction and may positively impact investor sentiment. This internal investment can often be interpreted as a strong signal of commitment to the company's future success.

Additionally, the announcement of the private placement in conjunction with the forthcoming quarterly results release could create anticipatory effects in the market. Investors may scrutinize the forthcoming financial results for indications of the company's operational efficiency and growth trajectory, which could influence stock volatility in the short term. Long-term, the capital raised through this placement could enable Movano Health to achieve key milestones that may drive further market value.

Financing included a strategic seed investment by a tier-1 multi-billion dollar medical device company and participation from members of Movano Health's management team and board of directors

Hosting conference call on April 4, 2024 at 2:00 PM PT/5:00 PM ET

PLEASANTON, Calif., April 2, 2024 /PRNewswire/ -- Movano Health (Nasdaq: MOVE), a pioneer in health technology, today has agreed to sell approximately 45 million units in a $24 million private placement, with each unit consisting of one share of the Company's common stock (or pre-funded warrant in lieu thereof) and one warrant to purchase a share of common stock, to a select group of investors that includes a tier-one multi-billion dollar medical device company, institutional and accredited investors, and  members of the Company's management team and board of directors. Movano Health intends to use the net proceeds from the financing for working capital and general corporate purposes. The proceeds from this financing, combined with current cash, cash equivalents and marketable securities, are expected to be sufficient to fund the current operating plan well into 2025.

"Today marks a pivotal moment in our company's journey – securing a strategic investment from one of the world's leading medical device companies as part of a significant capital infusion. This event not only underscores the vast potential of Movano Health's innovative approach to delivering medical-grade data to both consumers and enterprises but also acts as an endorsement of the company's vision and technological advancements," said John Mastrototaro, CEO of Movano Health.

The $24 million private placement includes a $3.0 million seed investment from the tier 1 medical device company and more than $3.6 million from members of Movano Health's management team and board of directors.

"We are thrilled to have the support of such a prestigious strategic investor, alongside the substantial investment from Movano Health's management team and board of directors and broad-based backing of institutional and accredited investors," said Mastrototaro. "With this capital raise, we have the financial resources to accelerate the development of our proprietary technologies and wearable medical device solutions for the significant enterprise opportunity that exists in healthcare."

Terms

Each unit includes one common share sold at a price of $0.4071, and one warrant priced at $0.125 to purchase one common share, for a unit price of $0.533. The warrants will have an exercise price of $0.4071 per share of common stock, will be immediately exercisable, and have a five year term. The pre-funded warrants will have an exercise price of $0.001 per share of common stock, will be immediately exercisable, and will remain exercisable until exercised in full. The financing is expected to close on April 4, 2024, subject to customary closing conditions. Movano Health anticipates the gross proceeds from the private placement to be approximately $24 million, before deducting any offering-related expenses.

The Benchmark Company, LLC acted as placement agent for the offering. The Liquid Venture Partners group at The Benchmark Company, LLC was responsible for sourcing and executing the offering.

K&L Gates LLP represented the Company and Greenberg Traurig, LLP represented the placement agent in the transaction.

The securities described above have not been registered under the Securities Act of 1933, as amended. Accordingly, these securities 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. Movano Health has agreed to file a registration statement with the U.S. Securities and Exchange Commission (the "SEC") registering the resale of the shares of common stock and the shares of common stock issuable upon exercise of the pre-funded warrants issued in this private placement. Any offering of the securities under the resale registration statement will only be made by means of a prospectus.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

Fourth Quarter, 2024 Results and Conference Call on April 4, 2024
In a separate press release today, Movano Health announced it will release its fourth quarter 2023 results on April 4, 2024, after the market close. Management will be hosting a conference call to discuss the results and provide a business update on the same day at 2:00 PM PT/5:00 PM ET.

Attendees can access the live webcast here or on the investors section of Movano Health's website at https://ir.movano.com. The conference call can be accessed by dialing 1-877-407-0989 (domestic), or 1 201-389-0921 (international). Attendees can also use the Call Me Link, in which they will be dialed in to the conference call instantly on the number provided with no hold time. An archived webcast will be available on Movano Health's website approximately one hour after the completion of the event and for two years thereafter.

About Movano Health 
Founded in 2018, Movano Inc. (Nasdaq: MOVE) dba Movano Health is developing a suite of purpose-driven healthcare solutions to bring medical-grade data to the forefront of wearables. Featuring modern and flexible form factors, Movano Health's devices offer an innovative approach to delivering trusted data to both customers and enterprises, capturing a comprehensive picture of an individual's health data and uniquely translating it into personalized and intelligent insights.

Movano Health's proprietary technologies and wearable medical device solutions will soon enable the use of data as a tool to proactively monitor and manage health outcomes across a number of patient populations that exist in healthcare. For more information on Movano Health, visit https://movanohealth.com/.

Forward Looking Statements
This press release contains forward-looking statements concerning our expectations, anticipations, intentions, beliefs, or strategies regarding the future. These forward-looking statements are based on assumptions that we have made as of the date hereof and are subject to known and unknown risks and uncertainties that could cause actual results, conditions, and events to differ materially from those anticipated. Therefore, you should not place undue reliance on forward-looking statements. Examples of forward-looking statements include, among others, statements we make regarding the anticipated closing of the private placement transaction, plans with respect to commercial launch of the Evie Ring; planned cost-cutting initiatives; anticipated FDA clearance for the Evie Ring and other products in development; expected future operating results; product development and features, product releases, clinical trials and regulatory initiatives; our strategies, positioning and expectations for future events or performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in our most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q, and in our other reports filed with the Securities and Exchange Commission, including under the caption "Risk Factors."  Any forward-looking statement in this release speaks only as of the date of this release. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

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SOURCE Movano

FAQ

What is the ticker symbol of Movano Health?

The ticker symbol of Movano Health is MOVE.

How much did Movano Health secure in the private placement?

Movano Health secured $24 million in the private placement.

Who participated in the financing of Movano Health?

The financing involved a strategic seed investment from a tier-1 medical device company, members of Movano Health's management team and board of directors, and institutional and accredited investors.

What will Movano Health use the net proceeds for?

Movano Health intends to use the net proceeds for working capital and general corporate purposes.

When is the expected closing date of the financing?

The financing is expected to close on April 4, 2024, subject to customary closing conditions.