Wearable Devices Ltd. announces a public offering of 2.5 million shares at $1.00 each, aiming for $2.5 million gross proceeds.
Quiver AI Summary
Wearable Devices Ltd. has announced a public offering of up to 2.5 million ordinary shares and warrants to purchase an additional 2.5 million shares at a combined price of $1.00 per unit, expected to generate gross proceeds of approximately $2.5 million. The warrants will be exercisable immediately at the same price and will expire five years after issuance. The offering is anticipated to close on January 30, 2025, subject to standard conditions. Proceeds will be used for working capital and corporate purposes. Additionally, the company is amending existing warrants for the same investor, reducing their exercise price from $2.50 to $1.00. The offering follows a registration statement with the SEC that was declared effective on January 28, 2025. Wearable Devices specializes in AI-based wearable technology that enhances human-computer interaction, with products like the Mudra Band and Mudra Link.
Potential Positives
- The successful pricing of a public offering allows Wearable Devices Ltd. to raise approximately $2.5 million in gross proceeds, providing necessary capital for working capital and general corporate purposes.
- The offering includes warrants that are immediately exercisable, potentially enhancing liquidity and interest from investors.
- The agreement to amend existing warrants shows a commitment to strengthen relationships with institutional investors, potentially fostering future investment opportunities.
- This press release highlights the company's innovative technology in AI-powered gesture control, reinforcing its position in the rapidly growing AR/VR/XR market.
Potential Negatives
- The company is raising funds through a public offering at a low price of $1.00 per share, which may indicate potential challenges in attracting investors or a decline in market valuation.
- The amendment of existing warrants to lower their exercise price from $2.50 to $1.00 could signal a lack of confidence in the company's stock performance, potentially leading to dilution of current shareholders’ equity.
- The reliance on a single institutional investor for this offering may raise concerns about the company's financial stability and attractiveness to a broader investor base.
FAQ
What is the recent public offering by Wearable Devices Ltd.?
Wearable Devices Ltd. has priced a public offering of 2.5 million ordinary shares and warrants at $1.00 each.
When is the expected closing date of the offering?
The closing of the offering is anticipated on or about January 30, 2025, subject to customary conditions.
How will the proceeds from the offering be used?
The company plans to use the net proceeds for working capital and general corporate purposes.
What are the terms of the warrants associated with this offering?
The warrants will be exercisable immediately at $1.00 per share and will expire five years from the issuance date.
Who is acting as the placement agent for the offering?
A.G.P./Alliance Global Partners is the sole placement agent for the offering.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$WLDS Hedge Fund Activity
We have seen 5 institutional investors add shares of $WLDS stock to their portfolio, and 2 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- CITADEL ADVISORS LLC added 96,954 shares (+1076.8%) to their portfolio in Q3 2024, for an estimated $449,672
- UBS GROUP AG added 40,359 shares (+1309.9%) to their portfolio in Q3 2024, for an estimated $187,185
- SUSQUEHANNA INTERNATIONAL GROUP, LLP removed 3,104 shares (-74.4%) from their portfolio in Q3 2024, for an estimated $14,396
- NATIONAL BANK OF CANADA /FI/ added 1,500 shares (+inf%) to their portfolio in Q3 2024, for an estimated $6,957
- COMMONWEALTH EQUITY SERVICES, LLC added 1,310 shares (+inf%) to their portfolio in Q3 2024, for an estimated $6,075
- XTX TOPCO LTD removed 1,154 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $5,352
- HRT FINANCIAL LP added 636 shares (+inf%) to their portfolio in Q3 2024, for an estimated $2,949
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
Yokneam Illit, Israel, Jan. 28, 2025 (GLOBE NEWSWIRE) -- Wearable Devices Ltd. (the “Company” or “Wearable Devices”) (Nasdaq: WLDS, WLDSW), an award-winning pioneer in artificial intelligence (“AI”)-based wearable gesture control technology, today announced the pricing of its "reasonable best efforts" public offering with a single institutional investor for the purchase and sale of up 2,500,000 ordinary shares (or pre-funded warrants in lieu thereof) and warrants to purchase up to 2,500,000 ordinary shares, at a combined offering price of $1.00 per share and accompanying warrant (the “Offering”). The Company expects to receive aggregate gross proceeds of approximately $2.5 million, before deducting placement agent fees and other offering expenses and assuming no exercise of the warrants. The warrants will have an exercise price of $1.00 per share, will be exercisable immediately and will expire five years from the issuance date.
The closing of the Offering is expected to occur on or about January 30, 2025, subject to the satisfaction of customary closing conditions. The Company intends to use the net proceeds from the Offering for working capital and general corporate purposes.
A.G.P./Alliance Global Partners is acting as the sole placement agent for the Offering.
In connection with the Offering, the Company also agreed to amend existing warrants that were previously issued to the investor participating in the Offering to purchase up to 822,000 ordinary shares of the Company, with an exercise price of $2.50 per share. Effective upon closing of the Offering, such existing warrants will be amended to reduce the exercise price to $1.00 per share and will expire five years following the closing of the Offering.
The securities described above are being offered pursuant to a registration statement on Form F-1, as amended (File No. 333-284023), previously filed with the Securities and Exchange Commission ("SEC"), which was declared effective on January 28, 2025. The Offering is being made only by means of a prospectus forming part of the effective registration statement. Copies of the preliminary prospectus and, when available, copies of the final prospectus, relating to the Offering may be obtained on the SEC’s website located at http://www.sec.gov . Electronic copies of the final prospectus relating to the Offering may be obtained, when available, from A.G.P./Alliance Global Partners, 590 Madison Avenue, 28th Floor, New York, NY 10022, or by telephone at (212) 624-2060, or by email at [email protected] .
This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in this Offering, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.
About Wearable Devices Ltd.
Wearable Devices Ltd. is a pioneering growth company revolutionizing human-computer interaction through its AI-powered neural input technology for both consumer and business markets. Leveraging proprietary sensors, software, and advanced AI algorithms, the Company’s innovative products, including the Mudra Band for iOS and Mudra Link for Android, enable seamless, touch-free interaction by transforming subtle finger and wrist movements into intuitive controls. These groundbreaking solutions enhance gaming, and the rapidly expanding AR/VR/XR landscapes. The Company offers a dual-channel business model: direct-to-consumer sales and enterprise licensing. Its flagship Mudra Band integrates functional and stylish design with cutting-edge AI to empower consumers, while its enterprise solutions provide businesses with the tools to deliver immersive and interactive experiences. By setting the input standard for the XR market, Wearable Devices is redefining user experiences and driving innovation in one of the fastest-growing tech sectors. Wearable Devices’ ordinary shares and warrants trade on the Nasdaq under the symbols “WLDS” and “WLDSW,” respectively.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be covered by the “safe harbor” created by those sections. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as “believe,” “expect,” “may,” “should,” “could,” “seek,” “intend,” “plan,” “goal,” “estimate,” “anticipate,” “will” or other comparable terms. For example, we are using forward-looking statements when we discuss the expected closing date of the Offering, the use of proceeds, and the satisfaction of customary closing conditions. All statements other than statements of historical facts included in this press release regarding our strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: the trading of our ordinary shares or warrants and the development of a liquid trading market; our ability to successfully market our products and services; the acceptance of our products and services by customers; our continued ability to pay operating costs and ability to meet demand for our products and services; the amount and nature of competition from other security and telecom products and services; the effects of changes in the cybersecurity and telecom markets; our ability to successfully develop new products and services; our success establishing and maintaining collaborative, strategic alliance agreements, licensing and supplier arrangements; our ability to comply with applicable regulations; and the other risks and uncertainties described in our annual report on Form 20-F for the year ended December 31, 2023, filed on March 15, 2024 and our other filings with the SEC, including the registration statement on Form F-1, as amended (File No. 333-284023). We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
Investor Relations Contact
Michal Efraty
[email protected]