Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) Rallies As Rights Offering Looms

Nasdaq:Ekso

Ekso Bionics Holdings, Inc. (NASDAQ:EKSO)

Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) rallied 18.49% in Friday’s trading session days after announcing a proposed rights offering that seeks to raise up to $34 million. The company plans to use net proceeds from the offering to expand its clinical, sales, and marketing initiatives as well as expand its footprint in Asia.

Stock Performance

Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) has underperformed the overall industry for the better part of the year. Traders are now waiting to see if Friday’s rally will result in a reversal of the downtrend ahead of key resistance at $2.50 a share. The stock is currently trading in a $1.40 to $1.93 trading range.

Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) is a leading developer of exoskeleton solutions designed to amplify human potential by enhancing strength, endurance, and mobility. The company develops solutions that help people with paralysis to stand up and walk as part of its mission of enhancing human capabilities on job sites.

Rights Offering

The approved rights offering will result in the issuance of 34,000,000 shares of the company’s stock at a price of $1 a share. The rights offering is to be made through the pro-rata distribution of non-transferable subscription rights. Each holder of shares of common stock as of the record date, August 10, 2017, is to receive one subscription right for each share of common stock.

Pursuant to the terms of the rights offering, Puissance Capital Management has entered into an agreement for the purchase at $1 a share of any unsubscribed shares at the offering. However, the firm cannot own more than 40% of the company’s outstanding shares of common stock following the rights offering.

“The company is planning to commence the proposed rights offering in August of 2017 in order to raise equity capital in a timely and cost-effective manner while providing its shareholders the opportunity to participate,” Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) in a statement.

In addition to using funds from the offering to accelerate the adoption of Ekso exoskeleton, Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) plans to use part of the funds for research and development of the product. The company also plans to develop and sell able-bodied exoskeleton for industrial use.

Separately, Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) stock has been added to the Russell Microcap Index as part of the annual Russell Equity Index Reconstitution.

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: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Author: Steve Clark

Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

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