Rewalk Robotics Ltd (NASDAQ:RWLK) Pricing Public Offering at Discount

Rewalk Robotics Ltd (NASDAQ:RWLK)

Rewalk Robotics Ltd (NASDAQ:RWLK) fell 14.8% after announcing the pricing of a public offering of 6.9 million shares at $1.05 a share. The developer of wearable robotic exoskeletons has also granted underwriters a 45-day option for the purchase of an additional 1 million shares. Currently, there are 25.91 million shares of RWLK outstanding. Accordingly, the public offering will have a materially dilutive effect on shareholder equity – a fact that likely fueled the sell-off.

Rewalk Robotics Ltd (NASDAQ:RWLK)

The offering should close on or about November 21, 2017. Rewalk Robotics Ltd (NASDAQ:RWLK) plans to use net proceeds for sales, marketing, and reimbursement expenses related to market development activities. Part of the funds are also to be used for research and development costs, related to the development of a lightweight soft-suit exoskeleton technology for various lower limb disabilities.

Rewalk Robotics Ltd (NASDAQ:RWLK) is closing in on its all-time lows after remaining under pressure for the better part of the year. The stock is down by more than 50% for the year as it continues to trade in a strong downtrend. Immediate support is at the $1.15 mark, below which the stock could register a new 52-week low.

Rewalk Q3 Financial Results

Investor’s confidence in the stock has taken a hit after Rewalk Robotics Ltd (NASDAQ:RWLK) reported a net loss of $5.8 million for the three months ended September 30, 2017. During the quarter, revenues grew 24% to $1.7 million and by 46% to $6.2 million for the first nine months of the year. Gross Margin in the quarter improved to 41% from 21% reported last year.

In defense of the company’s long-term prospects, Chief Executive Officer Larry Jasinski believes the company is on course for further growth.

“Our business continues to deliver year over year growth as we focus on advancing our key initiatives including insurance reimbursement coverage for the ReWalk Personal device and progressing our innovative soft suit exoskeleton technology, the Restore, designed for individuals who experienced a stroke,” said Mr. Jasinski.

Rewalk Robotics Ltd (NASDAQ:RWLK) has already begun pre-clinical testing of its Restore System as it seeks to evaluate its safety, as well as ability to address mobility needs for stroke patients. A clinical trial for the system is planned for the first quarter of next year with commercialization in Europe set for late 2018.

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.

Rewalk Robotics Ltd (NASDAQ:RWLK)

Rewalk Robotics Ltd (NASDAQ:RWLK) Shares Jump

Rewalk Robotics Ltd (NASDAQ:RWLK)

Rewalk Robotics Ltd (NASDAQ:RWLK) shares jumped 44% and RWLK ended the day at $1.80 after closing yesterday at $1.25. Volumes were heavy. RWLK have a listed 30-day, daily average trading volume of just over 150,000 but today more than 4.8 million shares traded hands.

Today Larry Jasinski, CEO of Rewalk Robotics Ltd (NASDAQ:RWLK), and collaborators form Harvard’s Wyss Institute for Biologically Inspired Engineering, premiered a prototype for a soft suit exoskeleton intended to assist stroke survivors.

Rewalk Robotics Ltd (NASDAQ:RWLK) is working with the Wyss Institute on the development of lightweight designs to complete clinical studies, pursue regulatory approvals and commercialize the systems on a global scale. The first commercial application will be for stroke survivors, followed by Multiple Sclerosis patients and then additional applications. There are an estimated 3 million stroke survivors with a lower limb disability in the U.S.

The exoskeleton transmits power to key joints of the legs with cable technologies. The functionality is powered by software and mechanics that are similar to the technologies used in the ReWalk exoskeleton system for individuals with spinal cord injury. The cables are connected to fabric-based designs that attach to the legs and foot, thus lending the name “soft suit.”

Shares of Rewalk Robotics Ltd (NASDAQ:RWLK) have performed well in the short term. RWLK shares have gained 44% over the past month and over 56% over the past week. However RWLK shares are down over 35% YTD and down over 73% for the year. EPS losses have been trending in the wrong direction as well. In 2012 shareholders of Rewalk Robotics Ltd (NASDAQ:RWLK) lost $0.67 per share and that loss expanded to -$2.47 in 2016. However sales have trended positively. In 2012 sales were reported at $1 million and in 2016 that number was $5.9 million. The consensus target price for RWLK shares is $4.90.

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 $RWLK and receive breaking news on other hot stocks by signing up for our free newsletter!

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.