Wearable Devices Ltd. entered into a warrant inducement transaction with an existing institutional investor, generating approximately $5.0 million in gross cash proceeds from the exercise of existing warrants and issuing new unregistered warrants.
Key takeaways
The company secured approximately $5.0 million in gross cash proceeds from the immediate exercise of existing warrants held by an institutional investor.
In exchange for exercising existing warrants, the investor received new unregistered warrants to purchase up to 5,082,873 ordinary shares at $1.51 per share.
The new warrants are exercisable immediately and expire five years from issuance, issued in a private placement under Section 4(a)(2) of the Securities Act.
The transaction involved reducing the exercise price of existing warrants to $1.73 per share, which included a $0.125 per share payment for the new warrants.
The company intends to use the net proceeds for working capital and other general corporate purposes, with A.G.P./Alliance Global Partners acting as exclusive financial advisor.