Myomo, Inc. Announces Proposed Public Offering of Common Stock

Rhea-AI Summary

Myomo (NYSE American: MYO), a wearable medical robotics company, has announced plans for an underwritten public offering of common stock. The company will grant the underwriter, Craig-Hallum Capital Group, a 30-day option to purchase up to an additional 15% of the offered shares.

The net proceeds will be used to:

• Accelerate revenue growth through increased advertising and headcount
• Support growth in the O&P channel and scale operations
• Fund product development and enhance the current MyoPro product line
• Develop next-generation products
• Provide working capital for general corporate purposes

The offering is being made under a shelf registration statement on Form S-3 that was declared effective on August 28, 2024.

Positive

• Potential revenue growth through increased advertising and sales force expansion
• Investment in product development and next-generation technologies
• Strengthening of working capital position

Negative

• Potential dilution of existing shareholders' equity
• Uncertainty regarding the offering size and terms
• Market-dependent completion risk

Insights

Financial Analyst

This common stock offering announcement signals significant financial implications for Myomo. The planned use of proceeds focuses on three key growth areas: revenue acceleration through increased advertising and headcount, operational scaling and product development. The timing of this capital raise aligns with the company's $165.7M market cap and suggests a strategic move to capitalize on growth opportunities in both direct billing and O&P channels.

While dilutive to existing shareholders, the offering could strengthen Myomo's market position in the wearable medical robotics space. The involvement of Craig-Hallum as sole underwriter and the 15% overallotment option indicate confidence in market demand. The company's focus on enhancing its MyoPro product line and developing next-generation products suggests a forward-looking strategy to maintain competitive advantages in the neurological disorders treatment market.

Medical Technology Analyst

The capital raise positions Myomo to expand its presence in the medical robotics market. The focus on product development and enhancement of the MyoPro line demonstrates commitment to technological advancement in treating upper limb paralysis. Investment in direct billing channels and O&P partnerships could accelerate market penetration and patient access to their wearable technology.

The strategic allocation of funds toward both commercial expansion and R&D suggests a balanced approach to growth. Enhanced advertising and operational scaling could improve market awareness and adoption of their medical devices, while investment in next-generation products indicates long-term vision for innovation in neurological rehabilitation technology.

BOSTON--(BUSINESS WIRE)-- Myomo, Inc. (NYSE American: MYO) (“Myomo”), a wearable medical robotics company that offers increased functionality for those suffering from neurological disorders and upper limb paralysis, today announced that it intends to offer and sell shares of its common stock in an underwritten public offering. In connection with the offering, Myomo also expects to grant the underwriter a 30-day option to purchase up to an additional 15% of the shares of common stock offered in the public 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.

Craig-Hallum Capital Group is acting as the sole managing underwriter for the offering.

Myomo expects to use the net proceeds of the offering, together with its existing cash and cash equivalents, to accelerate its revenue growth by funding an increase in advertising expenses and headcount to support the expected revenue growth in Myomo’s direct billing channel, along with investments in systems to support growth in the O&P channel and in scaling its operations. In addition, the net proceeds of the offering will be used to fund product development and sustaining engineering activities to enhance the current MyoPro product line and to develop the next generation of Myomo’s products, with the remainder for working capital and general corporate purposes.

The offering is being made pursuant to a shelf registration statement on Form S-3 (File No. 333-281311), as amended, including a base prospectus, relating to the shares of common stock to be issued in the proposed offering was filed with the Securities and Exchange Commission (the “SEC”) on August 6, 2024 and was declared effective on August 28, 2024. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, these securities, nor will there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale is not permitted.

Myomo will file a preliminary prospectus supplement relating to and describing the terms of the proposed offering with the SEC and will be available on the SEC’s website at www.sec.gov. The securities may be offered only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. Copies of the preliminary prospectus supplement and the accompanying base prospectus relating to the securities being offered may be obtained, when available, from Craig-Hallum Capital Group LLC, Attention: Equity Capital Markets, 222 South Ninth Street, Suite 350, Minneapolis, MN 55402, by telephone at (612) 334-6300 or by email at prospectus@chlm.com. The final terms of the offering will be disclosed in a final prospectus supplement to be filed with the SEC.

About Myomo

Myomo is a wearable medical robotics company that offers improved arm and hand function for those suffering from neurological disorders and upper-limb paralysis. Myomo develops and markets the MyoPro product line. MyoPro is a powered upper-limb orthosis designed to support the arm and restore function to the weakened or paralyzed arms of certain patients suffering from CVA stroke, brachial plexus injury, traumatic brain or spinal cord injury or other neuromuscular disease or injury. It is currently the only marketed device in the U.S. that, sensing a patient’s own EMG signals through non-invasive sensors on the arm, can restore an individual’s ability to perform activities of daily living, including feeding themselves, carrying objects and doing household tasks. Many are able to return to work, live independently and reduce their cost of care. Myomo is headquartered in Boston, Massachusetts, with sales and clinical professionals across the U.S. and representatives internationally.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, of which provisions Myomo is availing itself. Such forward-looking statements include, but are not limited to, those regarding the completion of the proposed offering and expectations regarding the timing, anticipated use of proceeds from the offering and expectations to grant the underwriter a 30-day option to purchase additional shares. Certain forward-looking statements can be identified by the use of forward-looking terminology, such as “believes,” “expects,” “may,” “will,” “could,” “should,” “seeks,” “approximately,” “intends,” “plans,” “estimates,” or “anticipates,” or the negative thereof or other comparable terminology, or by discussions of strategy, plans, objectives, intentions, estimates, forecasts, outlook, assumptions, or goals. Any forward-looking statements in this press release are based on management’s current expectations and beliefs and are subject to a number of risks, uncertainties and important factors that may cause actual events or results to differ materially from those expressed or implied by any forward-looking statements contained in this press release, including, without limitation, uncertainties related to market conditions and satisfaction of customary closing conditions related to the proposed offering. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Myomo assumes no obligation to update information contained in this press release whether as a result of new developments or otherwise, except as required by law.

Please refer to Myomo's most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other subsequent filings with the SEC, which are available at the SEC's website at www.sec.gov, for additional and more detailed discussion of risk factors that could cause actual results to differ materially from Myomo’s current expectations.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241204653512/en/

For Myomo:

ir@myomo.com

Investor Relations:

Kim Sutton Golodetz

Alliance Advisors IR

kgolodetz@allianceadvisors.com

212-838-3777

Source: Myomo, Inc.

FAQ

What is the purpose of Myomo's (MYO) public offering announced in 2024?

The offering aims to fund revenue growth through increased advertising, expand headcount, support O&P channel growth, enhance the MyoPro product line, and provide working capital for general corporate purposes.

Who is the underwriter for Myomo's (MYO) 2024 public offering?

Craig-Hallum Capital Group is acting as the sole managing underwriter for the offering.

When was Myomo's (MYO) shelf registration statement declared effective?

The shelf registration statement on Form S-3 was declared effective on August 28, 2024.

What additional option is being granted to the underwriter in Myomo's (MYO) offering?

The underwriter will receive a 30-day option to purchase up to an additional 15% of the shares offered in the public offering.