Exoskeleton maker and institutional investors agree on preferred stock and warrants
Proceeds will fund clinical and sales and marketing activities, R&D and commercialization activities related to a robotic exoskeleton for home use, the development and commercialization of exoskeletons for industrial use.
Ekso Bionics Holdings, Inc offered as OTCQB:EKSO , a global robotic exoskeleton company, announced today 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 to the Company from this offering are $15 million. The Company intends to use the net proceeds from this offering 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 an Ekso robotic exoskeleton for home use, for the development and commercialization of able-bodied exoskeletons for industrial use and for other general corporate purposes.
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 5 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 is expected to take place on or about December 28, 2015, subject to the satisfaction of customary closing conditions.
Ladenburg Thalmann acted as the sole lead placement agent in connection with the offering. Trout Capital LLC served as co-placement agent in connection with the offering.
The Series A Convertible Preferred Stock and warrants described above (and the shares issuable from time to time upon conversion or exercise thereof) are being offered by the Company pursuant to a prospectus supplement to the Company’s Registration Statement on Form S-3 (File No. 333-205168) filed with the Securities and Exchange Commission (“SEC”) which became effective on July 9, 2015.
A final prospectus relating to this offering will be filed by the Company with the SEC. When available, copies of the final prospectus can be obtained at the SEC’s website at http://www.sec.gov or from Ladenburg Thalmann & Co. Inc., Prospectus Department, 570 Lexington Avenue, 11th Floor, New York, New York 10022, by calling (212) 409-2000.
About Ekso Bionics
Ekso Bionics: robotic exoskeletons, or wearable robots, to augment human strength, endurance and mobility. The company’s first commercially available product called Ekso has helped thousands of people living with paralysis take millions of steps not otherwise possible. By designing and creating some of the most forward-thinking and innovative solutions for people looking to augment human capabilities, Ekso Bionics is helping people rethink current physical limitations and achieve the remarkable. Ekso Bionics is headquartered in Richmond, CA.