Yokneam Ilit, Israel-based ReWalk said it expects to post sales of $1.8 million for the three months ended June 30, which would come in under the $2.0 million expectation on Wall Street.
ReWalk also said that the second, $10 million tranche of the $20 million private placement it inked with Timwell Investment back in March missed its July 1 deadline. That tranche was contingent on the formation of a joint venture with Timwell in China, with license and supply agreements inked no later than 20 days after the ink on the JV dries.
Although the parties are working on closing the second tranche and ReWalk said it “expects to be able to move forward with the closing,” it hasn’t due to “the different jurisdictions involved and certain technical and administrative delays.”
Investors reacted to the news by sending RWLK shares down some -25.4% to 93¢ apiece today in mid-afternoon trading.
That despite some positive reimbursement news in the U.S. and overseas; ReWalk said the U.S. Veteran Affairs Dept. last month revised its policy on exeskeletons, expanding access to training programs for veterans with spinal cord injuries. The decision takes the number of certified VA and private ReWalk training centers to 142, the company said. And in Germany, ReWalk said that the German National Assn. of Statutory Health Insurance Funds included its device in that country’s official list of medical aids.