Medigus (TLV:MDGS) late last week priced a $1.6 million direct placement and released its third quarter earnings, seeing operating losses drop compared with the same period during the previous year.
In its direct placement, the company said it is offering 810,000 American depository shares at approximately $2 per ADS alongside unregistered warrants to purchase an additional 405,000 ADSs. The warrants in the direct placement have a term of 5.5 years and are exercisable at six months after the issuance date with an exercise price of $2.25 per ADS.
Medigus said it expects the offering to result in gross proceeds of approximately $1.6 million, which it intends to use for general corporate purposes, according to a press release.
The company expects the sale to close on or around November 28, subject to customary closing conditions.
In its financial release, the company reported revenues of $117,000 for the quarter, down 14% from the same quarter during the previous year, with operating loss of $1.3 million, down from $1.9 million during the same quarter in 2016.
Research & development costs were approximately $654,000, down 8%, while sales and marketing expenses clocked in at $159,000, down 54% from the same period last year. General administrative expenses were $490,000, down 51% compared with the previous year.
Medigus said that during the quarter, it expanded a distribution agreement with China’s Golden Grand and inked a distribution deal with Spain’s Izasa Hospital, who put in the first purchase order for its Muse system in October.
“In recent months, we have announced progress across key areas of our development strategy, including broadening the availability of our flagship Muse system with leading multinational distributors. We are positioned to enter 2018 with positive momentum as we drive our development and clinical programs forward,” CEO Chris Rowland said in a press release.
Shares in Medigus have risen 2.4% so far today, at $1.72 as of 1:25 p.m. EST.
