California robotics company Ekso Bionics (OTCBB:EKSO) raised $20.6 million through a private placement offering and a reverse merger that made the company a wholly owned subsidiary of Ekso Bionics Holdings.
Ekso completed a sale of nearly 20.6 million units, each comprised of 1 share of common stock and 1 warrant to purchase a share for $2 over the next 5 years.
The company develops wearable robotic exoskeletons for use in rehabilitation settings, as well as for potential applications in military, industrial or consumer markets. Ekso in May 2012 won CE Mark approval in the European Union for a bionic exo-skeleton designed to provide mobility to wheelchair-bound patients.
"Ekso Bionics was founded to design and develop the world’s most innovative solutions for augmenting human capabilities. In 2012 we delivered our first robotic exoskeleton to the rehabilitation community, achieving the remarkable ability to help people living with spinal cord injuries to stand and walk again," CEO Nathan Harding said in prepared remarks. "This financing, led with investments from Opaleye L.P. and Montrose Capital Partners, represents an exciting milestone in our company’s history by providing the capital to expand our technology even further and drive adoption in the neuro-rehabilitation market."
The newly raised funds will go toward supporting Ekso’s commercial efforts, R&D programs and to paying off $2.5 million in venture debt, according to a company statement.
EKSO shares, which opened at $2.70 on January 22, have since lost about 7.4%, closing at $2.50 last night.
