Ekso Bionics Holdings, Inc. (NASDAQ:EKSO)
Shares of Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) traded lower after the developer of exoskeleton solutions said it raised $34 million in a previously announced rights offering. Puissance Capital Management invested $20.5 million for 20,536,058 common shares. The stock was down by 1.71% on the news.
The stock is currently trading in a downtrend in a $1.02 – $1.17 trading range, levels last seen in June. Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) faces the risk of being hit with a delisting notice by the NASDAQ Capital market after the stock fell below the $1 a share mark. A close below the current trading range could see the stock registering a new 52-week low.
Ekso Bionics develops and sells exoskeleton for use in the healthcare, industrial, and military industries. The company’s lead product is the Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) GT, a bionic suit designed to provide the ability to walk over ground without the need for a cane or crutches.
According to the Chief Executive Officer, Thomas Looby, the closure of the $34 million rights offering provides additional resources to enhance the development and commercialization of exoskeleton solutions,.
“We believe that this financing reflects growing excitement within the investment community for the potential of our products and technologies. The capital raised through this financing will provide us with additional resources to further advance the adoption and development of our innovative exoskeleton solutions,” said Mr. Looby.
Net Proceeds Use
Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) plans to use part of the net proceeds to accelerate the adoption of its exoskeleton solutions in the rehabilitation market as it also moves to expand its footprint into China. The funds will also be used for further research, development, and commercialization.
A $20 Million investment by Puissance Capital demonstrates the global asset management firm’s confidence in Ekso Bionics Holdings, Inc. (NASDAQ:EKSO)’s long-term prospects. Following the investment, Ted Wang of Puissance will join the Ekso Board of Directors.
Separately, Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) has confirmed the appointment of Christian Babini as the new vice president of sales for the America’s. He joins the company with more than 20 years of diverse medical device sales experience. He previously served as the Global Vice-President for sales and marketing development at Medtech Surgical.
“[..] Ekso’s innovative exoskeleton portfolio provides significant value to our customers, and I look forward to helping accelerate our sales effort and expand our market presence,” said Mr. Babini
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.