ReWalk Robotics Ltd. (NASDAQ: RWLK) shares dropped after it announced the pricing of a secondary offering. According to the prospectus, the company is offering 3.25 million units at the price of $3.75 per unit. Each unit consists of one share and 0.75 of a warrant to purchase one ordinary share with an exercise price of $4.75.
Oppenheimer is acting as the sole underwriter for the offering, and it has an option to purchase an additional 487,500 units.
For some background: ReWalk Robotics develops, manufactures and markets wearable robotic exoskeletons for individuals with spinal cord injury.
The company describes its mission as follows:
Our mission is to fundamentally change the quality of life for individuals with lower limb disability through the creation and development of market leading robotic technologies.
The company intends to use the net proceeds of the offering for general corporate purposes, including supporting its ongoing sales, marketing and reimbursement efforts to grow its business and funding research and development activities focused on product development.
Excluding Thursday’s move, ReWalk has drastically underperformed the broad markets, with the stock down nearly 70% year to date. Over the past 52 weeks, the stock is only down about 45%.
Shares of ReWalk were trading down 26% at $3.29 on Thursday, with a consensus analyst price target of $11.75 and a 52-week trading range of $3.25 to $17.40.