Vivos Therapeutics Closes $8 Million Private Placement

Rhea-AI Summary

Vivos Therapeutics (NASDAQ: VVOS) has successfully completed a private placement offering, raising $8 million in gross proceeds. After expenses, the company expects net proceeds of approximately $7.4 million to be used for general working capital as it aims to drive revenue growth and control expenses in 2023. The offering included 2 million shares of common stock and warrants for 6.67 million shares at an effective price of $1.20 per share. Vivos promises to file a resale registration statement to allow subsequent trading of these securities.

Positive

• Raised $8 million in gross proceeds from a private placement.
• Expects to receive net proceeds of approximately $7.4 million for working capital.
• The offering aims to support revenue growth and expense management in 2023.

Negative

• Securities offered are not registered under the Securities Act, limiting their immediate resale potential.
• The private placement may cause shareholder dilution.

New capital extends cash runway as Vivos seeks to drive revenue growth and manage expenses in 2023

LITTLETON, Colo., Jan. 09, 2023 (GLOBE NEWSWIRE) -- Vivos Therapeutics, Inc. (“Vivos” or the “Company'') (NASDAQ: VVOS), a medical technology company focused on developing innovative treatments for patients suffering from dentofacial abnormalities and/or mild-to-moderate obstructive sleep apnea (OSA) and snoring in adults, today announced that it has closed its previously announced private placement offering with a single institutional investor for $8 million in gross proceeds.

After the placement agent fees and estimated offering expenses payable by the Company, the Company expects to receive net proceeds of approximately $7.4 million. Vivos intends to use the net proceeds from the private placement for general working capital and corporate purposes as it seeks to both drive revenue growth and manage expenses during 2023.

The private placement consisted of an aggregate of 2,000,000 shares of Company common stock, pre-funded warrants to purchase up to an aggregate of 4,666,667 shares of Company common stock and common stock purchase warrants to purchase up to an aggregate of 6,666,667 shares of Company common stock at $1.20 per share for five years and six months from closing. The effective purchase price per share of common stock (or pre-funded warrant in lieu thereof) and associated warrant was $1.20.

Roth Capital Partners and A.G.P./Alliance Global Partners acted as placement agents for the offering.

The securities offered in the private placement have not been registered under the Securities Act of 1933, as amended (the “Securities Act”) or applicable under state securities laws. Accordingly, the 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 and such applicable state securities laws. As part of the transaction, the Company has agreed to file a resale registration statement on Form S-1 with the Securities and Exchange Commission within 30 days of January 5, 2023 for purposes of registering the resale of the shares of common stock and shares of common stock underlying the pre-funded warrants and warrants issued in the private placement.

About Vivos Therapeutics, Inc.

Vivos Therapeutics, Inc. (NASDAQ: VVOS) is a medical technology company focused on developing and commercializing innovative diagnostic and treatment methods for patients suffering from breathing and sleep issues arising from certain dentofacial abnormalities such as mild-to-moderate obstructive sleep apnea (OSA) and snoring in adults. The Vivos Method represents the first clinically effective nonsurgical, noninvasive, nonpharmaceutical and cost-effective solution for treating mild to moderate OSA. It has proven effective in over 31,000 patients treated worldwide by more than 1,650 trained dentists.

The Vivos Method includes the Vivos Complete Airway Repositioning and/or Expansion (CARE) appliance therapy and associated protocols that alter the size, shape and position of the soft tissues that comprise a patient’s upper airway and/or palate. The Vivos Method opens airway space and may significantly reduce symptoms and conditions associated with mild-to-moderate OSA, such as lowering Apnea Hypopnea Index scores. Vivos also markets and distributes SleepImage diagnostic technology under its VivoScore program for home sleep testing in adults and children. The Vivos Integrated Practice (VIP) program offers dentists training and other value-added services in connection with using The Vivos Method.

Cautionary Note Regarding Forward-Looking Statements

This press release and statements of the Company’s management made in connection therewith contain “forward-looking statements” (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events, particularly with respect to the public offering described herein. Words such as “may”, “should”, “expects”, “projects,” “intends”, “plans”, “believes”, “anticipates”, “hopes”, “estimates” and variations of such words and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks and are based upon several assumptions and estimates, which are inherently subject to significant uncertainties and contingencies, many of which are beyond Vivos’ control. Actual results (including the anticipated benefits to the Company of the private placement and the Company’s revenue growth and cost cutting initiatives, each as described herein) may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the risk factors described in Vivos’ filings with the Securities and Exchange Commission (“SEC”). Vivos’ filings can be obtained free of charge on the SEC's website at www.sec.gov. Except to the extent required by law, Vivos expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Vivos' expectations with respect thereto or any change in events, conditions, or circumstances on which any statement is based.

Vivos Investor Relations and Media Contact:
Julie Gannon
Investor Relations Officer
720-442-8113
jgannon@vivoslife.com

FAQ

What is the significance of Vivos Therapeutics' recent private placement for VVOS shareholders?

The recent private placement raised $8 million to support Vivos' revenue growth and expense management strategies, which could positively affect VVOS's stock performance.

How much will Vivos Therapeutics net from its private placement?

After fees and expenses, Vivos Therapeutics expects to net approximately $7.4 million from its private placement.

What are the terms of the securities offered by Vivos in its private placement?

The private placement included 2 million shares of common stock and purchase warrants for 6.67 million shares at an effective price of $1.20 per share.

How will Vivos Therapeutics utilize the funds from its private placement?

Vivos plans to use the net proceeds for general working capital to drive revenue growth and manage expenses in 2023.

When will Vivos Therapeutics file the resale registration statement related to the private placement?

Vivos has agreed to file a resale registration statement within 30 days of January 5, 2023.