Microbot Medical Inc (MBOT) Shares Took a Hit on Back of Share Dilution

Microbot Medical Inc (NASDAQ:MBOT) announced that it has entered into a definitive agreement with three institutional investors for a registered direct offering of shares of its common stock for total gross proceeds of $10.125 million, before deducting placement agent fees and offering expenses.

In connection with the offering, Microbot will issue 3,750,000 shares of common stock at a purchase price of $2.70 per share, a 29% discount to yesterday’s closing price. The offering is expected to close on or about June 8, 2017, subject to satisfaction of customary closing conditions.

The Company expects to use the resources from the financing to expand and leverage the current ViRob and TipCAT technology platforms, for potential strategic partnerships and acquisition of assets, products or entities, and for general corporate and working capital purposes.

The public offering would dilute shareholders’ investments, and as such Microbot shares are currently dropping nearly 29% to $0.535 in per-market trading. MBOT has a 1-year high of $26.91 and a 1-year low of $1.28. The stock’s 50-day moving average is $4.35 and its 200-day moving average is $5.61.

MBOT Chart

StemCells, Inc. engages in the research, development and commercialization of stem cell therapeutics and related tools and technologies for academia and industry. The company is focused on developing and commercializing stem and progenitor cells as the basis for novel therapeutics and therapies; and cells and related tools and technologies to enable stem cell-based research and drug discovery and development. StemCells research and development efforts are focused on identifying and developing stem and progenitor cells as potential therapeutic agents.


Stay Ahead of Everyone Else

Get The Latest Stock News Alerts