Wearable Devices Ltd. closed a $2.5 million public offering, selling shares and warrants for AI-based gesture control technology.
Quiver AI Summary
Wearable Devices Ltd. has completed a public offering raising approximately $2.5 million by selling 345,000 ordinary shares, 2,155,000 pre-funded warrants, and warrants for an additional 2,500,000 ordinary shares, all priced at $1.00 each. The warrants, which expire in five years, are exercisable immediately at the same price. The funds will be utilized for working capital and corporate purposes. Additionally, the company amended existing warrants for the same investor, lowering their exercise price from $2.50 to $1.00. The offering was conducted under an effective SEC registration statement, and A.G.P./Alliance Global Partners served as the sole placement agent. Wearable Devices focuses on AI-based wearable gesture control technology aimed at enhancing interaction in the consumer and business markets.
Potential Positives
- The offering closed successfully, raising approximately $2.5 million in gross proceeds, which will support working capital and general corporate purposes.
- The amendment of existing warrants to reduce the exercise price to $1.00 enhances the attractiveness of the investment for the participating investor.
- The press release reinforces Wearable Devices' position in the rapidly growing AI-powered gesture control technology market, highlighting its innovative products and dual-channel business model.
Potential Negatives
- The Offering involved a significant number of warrants (2,500,000), which could lead to dilution of existing shareholders' equity if exercised.
- The reduced exercise price for existing warrants from $2.50 to $1.00 raises concerns about the company's financial health and ability to attract investors without offering substantial concessions.
- The total gross proceeds of approximately $2.5 million may be considered inadequate for a company at its growth stage, raising questions about its market viability and liquidity.
FAQ
What was the total gross proceeds from Wearable Devices' recent public offering?
The total gross proceeds from the public offering were approximately $2.5 million.
Who acted as the placement agent for the Offering?
A.G.P./Alliance Global Partners served as the sole placement agent for the Offering.
What is the exercise price of the newly issued warrants?
The exercise price of the newly issued warrants is set at $1.00 per share.
How will Wearable Devices utilize the proceeds from this Offering?
The proceeds will be used for working capital and general corporate purposes.
Where can I find the prospectus for the Offering?
The prospectus can be obtained from the SEC's website or by contacting A.G.P./Alliance Global Partners.
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. 30, 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 closing of its previously announced "reasonable best efforts" public offering with a single institutional investor for the purchase and sale of 345,000 ordinary shares, 2,155,000 pre-funded warrants, 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 received 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 have an exercise price of $1.00 per share, are exercisable immediately and expire five years from the issuance date.
The Company intends to use the net proceeds from the Offering for working capital and general corporate purposes.
A.G.P./Alliance Global Partners acted 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. Such existing warrants have been amended to reduce the exercise price to $1.00 per share and expire five years following the closing of the Offering.
The securities described above were 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 was made only by means of a prospectus forming part of the effective registration statement. Copies of the preliminary prospectus and 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 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 use of proceeds from this Offering. 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]