Ekso Bionics Holdings, Richmond, California, announced on December 24 that it entered into a definitive agreement with certain healthcare-focused institutional investors for the sale of 15,000 shares of Series A Convertible Preferred Stock and warrants to purchase 14,851,486 shares of the company’s common stock. The gross proceeds from the offering are $15 million.
The net proceeds from the offering will be used for investments in clinical, sales, and marketing initiatives to accelerate adoption of the Ekso exoskeleton in the rehabilitation market; for research, development, and commercialization activities with respect to a robotic exoskeleton for home use; for the development and commercialization of able-bodied exoskeletons for industrial use; and for other general corporate purposes, according to the announcement.
The Series A Convertible Preferred Stock is convertible into a total of 14,851,486 shares of common stock at an initial conversion price of $1.01 per share. The warrants have an exercise price of $1.25 per share, subject to adjustment as provided in the warrants, and are exercisable for five years from the closing date. The Series A Convertible Preferred Stock includes a beneficial ownership blocker but has no dividend rights (except to the extent dividends are also paid on the common stock) or liquidation preference. The securities are being sold in units, with each unit consisting of one share of Series A Convertible Preferred Stock and a warrant to purchase up to 990.1 shares of the company’s common stock. The securities comprising the units are immediately separable and will be issued separately.
The closing of the offering was expected to take place on or about December 28, subject to the satisfaction of customary closing conditions.
