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

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.

Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) To Cut Costs After Q1 Net Loss

Ekso Bionics Holdings, Inc. (NASDAQ:EKSO)

Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) has embarked on a cost-cutting drive after reporting a wider than expected first-quarter net loss of (-$8.3) million. The exoskeleton developer plans to streamline its operations and cut its workforce by about 25% in a bid to reduce cash burn.

Cost-Cutting Drive

Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) expects the cuts to result in a 25% reduction in monthly operating expenses. Cash severance and related expenses as a result of cutbacks could rise to $1 million. The cost-cutting drive will not interfere with the company’s research and development activities geared towards advancing proprietary solutions.

The restructuring comes at a time when Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) is looking for ways to fuel sales on its lead product Ekso GT – among other exoskeleton offerings. In a bid to push for sales in industrial markets, the company is currently working with partners to increase awareness.

“We remain on track with our strategic priority of establishing our unique products as the industry standard. We believe that the measures announced today will enhance shareholder value as we more efficiently deploy cash and solidify our leadership in the emerging exoskeleton industry,” said CEO Thomas Looby

A decline in revenues from $8.5 million as of last year to $1.4 million in Q1 2017 is a major point of concern. However, the chief executive officer remains confident that positive feedback will lead to greater success as they ramp up commercialization efforts.

Strategic Collaborations

Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) has already teamed up with four leading rehabilitation centers as part of an effort that seeks to expand the current target market. The four centers that the company is collaborating with are Barrow Neurological Institute, Good Shepherd Rehabilitation Network, Marianjoy Rehabilitation Hospital, part of Northwestern Medicine and Villa Beretta” Centro di Riabilitazione, Costa Masnaga (LC), Italy

The collaborations should advance the use of the company’s innovative exoskeleton in mobility-impaired patients. Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) also expects the collaboration to help build clinical support on the benefits of its products. Each center will also help research and development efforts.

“We are proud to work with these visionaries who are dedicated to helping patients with recovery and to provide quantifiable insights into the strides they’re making walking with an exoskeleton,” said Mr. Looby.

Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) stock was down by 9% in Friday’s trading session to end the week at $1.92 a share. In early Monday trading, EKSO shares are trading down a further 7%.

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.

Don’t miss out! Stay informed on $EKSO and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) Turns To EksoGT Exoskeleton To Fuel Growth

Ekso Bionics Holdings, Inc. (NASDAQ:EKSO)

Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) remains well positioned to become a global success on exoskeleton options, according to chief executive officer, Thomas Looby. The executive made the remarks after the company came under scrutiny on posting a wider than expected net loss for the first three months of the year.

Banking on EksoGT Exoskeleton

According to the executive, additional capital raised in the quarter provides the fuel to accelerate positive momentum through the end of the year. Ekso Bionics is banking on its FDA approved exoskeleton, EksoGT, developed for patients who have suffered a stroke or spinal cord injury.

Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) is the only exoskeleton available for rehabilitation institutions that seek to provide adaptive amounts of power to patient’s body. The executive believes that the exoskeleton provides a unique opportunity for growth as they move to meet rehabilitative global demand.

Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) received an award for the EksoGT exoskeleton from HealthTechZone .com further affirming its credibility in the emerging space. The award recognized the company’s success in improving healthcare delivery through new innovation.

“Healthcare is no exception as robot-assisted surgery has become the standard of care for some procedures. In the area of stroke rehabilitation, there is a need to ignite patient neuroplasticity through repetitive motion and the Ekso GT technology is ideally positioned to meet that demand, “said Mr. Looby

According to the CEO, Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) has pioneered the category and that position of primacy presents unique opportunities for sales given the lack of competition. Developing new robotic exoskeletons remains a core objective as the company moves to accrue a substantial amount of market share before competitors enter the sector.

Q1 Disappointment

The sentiments could not have come at a better time given that the company has come under immense pressure in the market after posting earnings that failed to beat estimates. The company posted a net loss of (-$8.3) million or (-$0.38) cents a share.

Revenues in the quarter more than halved to (-$1.4) million compared to (-$8.5) million a year ago. Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) exited the quarter with cash of $9.4 million compared to $12.3 million as of the same period last year. The company also raised an additional $11.7 million in the quarter that it plans to use to for working capital and for general corporate purposes.

Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) was down by 10.06% in Monday trading session ending the day at lows of $1.43 a share.

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.

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance

 

Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) Impresses on Earnings

Ekso Bionics Holdings, Inc. (NASDAQ:EKSO)

Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) beat their Q4 2016 analyst forecast both on an EPS and revenue basis. Q4 EPS was a loss of $0.35 – beating estimates by $0.05. Q4 revenues were $2.6 million – beating estimates by $0.86 million. For 2016, device and related revenue was $13.3 million. Gross profit for the year ended December 31, 2016 was $2.9 million, of which $2.6 million was attributable to device and related revenue.

Thomas Looby, president and chief executive officer at Ekso Bionics Holdings, Inc. (NASDAQ:EKSO). “With the broadest label in the US for exoskeletons, a sales and marketing team that is highly motivated and already making major inroads, a clinical study to provide evidence, and a technology that is changing lives, we have certainly had a productive 2016 and I am energized to lead this company into 2017 and beyond.”

Ekso Bionics, Inc. (NASDAQ:EKSO) designs, engineers, and develops robotic exoskeletons. In 2016, Ekso Bionics received the first FDA clearance exoskeleton for use with stroke and spinal cord injury levels to C7. Ekso Bionics is headquartered in Northern California.

Ekso Bionics went public in 2016. Their EPS history is a loss in 2014 of $30.2 which they narrowed in 2015 to an EPS loss of $1.66. Sales have an upward trend. In 2014 sales came in at $5.3 million but were $8.7 million in 2015. All four firms that follow Ekso Bionics, Inc. (NASDAQ:EKSO) rate EKSO shares as a “Strong Buy” with a consensus price target of $12.50 – about four times current trading levels.

3/7/2017
Ticker Symbol EKSO
Last Price a/o 5:40 PM EST  $                      3.40
Average Volume                    110,000
Market Cap (mlns)  $                    70.45
Sales (mlns) $13.60
Shares Outstanding (mlns) 21.81
Share Float (mlns) 18.73
Shortable Yes
Optionable Yes
Inside Ownership 0.10%
Short Float 3.21%
Short Interest Ratio 5.51
Quarterly Return -24.36%
YTD Return -18.84%
Year Return 0.00%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy. 

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading.