The board of directors of Ekso Bionics Holdings, Richmond, California, has approved a proposed rights offering to raise gross proceeds of up to $34 million. The proposed rights offering is to be made through the distribution of non-transferable subscription rights to purchase up to 34 million shares of the company’s common stock at $1 per share to shareholders and warrant holders as of August 10. Each holder of shares of common stock on August 10 will receive one subscription right for each share of common stock owned, and certain holders of warrants issued by the company on the record date will receive subscription rights.
The company intends to use the net proceeds to expand clinical, sales, and marketing initiatives to accelerate adoption of the Ekso exoskeleton in the rehabilitation market and broaden the Ekso footprint into Asia; to increase research, development, and commercialization activities for an Ekso robotic exoskeleton for home use; and/or in the development and commercialization of able-bodied exoskeletons for industrial use; and for working capital and other general corporate purposes.
Puissance Capital Management, New York, will purchase any unsubscribed shares of common stock following exercise of the basic subscription right at $1 per share, provided that it will not own more than 40 percent of the company’s outstanding shares of common stock.
