The Boston-based wearable medical robotics maker priced its “reasonable best efforts” public offering last week. It included more than 7.3 million shares of common stock priced at 60¢ per share. Members of management, affiliated investors and certain high-quality, healthcare-focused investors participated in the offering. A.G.P./Alliance Global Partners acted as the sole placement agent for the offering.
Myomo plans to use proceeds for general corporate purposes, according to a news release. That may include working capital and capital expenditures, R&D expenses and sales and marketing activities. Funds may also go toward company growth, contingent on the implementation of a new Medicare rule.
Earlier this year, the Centers for Medicare and Medicaid Services (CMS) announced a new proposed rule that could benefit Myomo. It would classify the company’s technology as a brace, enabling payments on a lump sum basis. If CMS finalizes this classification and publishes a fee in conjunction with the company’s next public meeting — expected to come before the end of the year — Myomo could also use proceeds to fund additions to its headcount.
The company wants to supplement its headcount. It said that, with added numbers, it could service a greater number of patients, procure additional inventory and ramp operations.
Myomo develops wearable medical robotic technologies, including the MyoPro. MyoPro offers improved arm and hand function for those suffering from neurological disorders and upper limb paralysis.
