Myomo today priced an upcoming $5.5 million public offering and has seen its share value slide nearly 20% in early morning trading.
The Cambridge, Mass.-based wearable medical robotics company said it plans to float approximately 4 million shares of its common stock at a price of $1.40 per share. The round will also include a 45-day underwriter’s option to purchase an additional 592,500 shares at the offering price, according to a press release.
Myomo said that it expects to receive gross proceeds of approximately $5.5 million, excluding expenses and fees. If the underwriter exercises its over-allotment option in full, gross proceeds are expected to be approximately $6.4 million, the company said.
National Securities Corporation is acting as the sole book-runner for the offering, Myomo added.
Funds raised in the round will be used to support working capital and general corporate purposes, the company said in a press release. The offering is expected to close on February 12.
Shares in Myomo have fallen approximately 19.9% today, at $1.36 as of 9:41 a.m. EST.
Earlier this week, Myomo said that it named David Henry as its new CFO, taking over for current chief financial officer Ralph Goldwasser, who is retiring effective February 18.