The company entered into agreements with certain new and existing institutional investors, plus insiders at Myomo. This agreement includes nearly 1.6 million shares of common stock priced at $3.80 per share.
In conjunction with the offering, Myomo disclosed that it expects existing cash plus proceeds to help achieve cash flow breakeven on a quarterly basis. The company anticipates realizing this by the fourth quarter of 2024. That accounts for the expectation of CMS establishing final fee that isn’t significantly lower than the currently published preliminary fee.
Last 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 the fee comes in around what the company expects, it could hire more personnel to increase its clinical, reimbursement and manufacturing capacity. The company expects to hire approximately 50 people over the next six months.
Myomo expects to close the offering on or about Jan. 19. It plans to use proceeds to scale up operations to serve Medicare Part B patients with the new coverage.
The company also released preliminary fourth-quarter financial results. It expects revenue between $4.6 million and $4.8 million, representing a rise between 14% and 19% year-over-year.
“We’ve begun deliveries of our MyoPro device to Medicare Part B beneficiaries, a patient population we expect to be a significant driver of revenue growth in 2024,” said Paul R. Gudonis, Myomo chair and CEO. “With this anticipated major increase in our addressable market, our aspiration is to achieve at least $100 million in annual revenues within the next five years.”
