BOSTON - Myomo (NYSE:MYO), Inc. (NYSE American: MYO), a company specializing in wearable medical robotics for individuals with neurological disorders and upper-limb paralysis, has announced a registered direct offering to raise approximately $6 million. The company has entered into securities purchase agreements with various institutional investors and insiders for the sale of around 1.58 million shares at $3.80 each, matching the closing price on the NYSE American on January 16, 2024.
The proceeds from this offering, along with Myomo's existing cash, are expected to fund operations until the company reaches cash flow breakeven, anticipated by the fourth quarter of 2024. This outlook hinges on receiving a final fee from the Centers for Medicare and Medicaid Services (CMS) that is not significantly lower than the preliminary fee, successful staff expansion, and avoiding unusual supply chain disruptions.
Scheduled to close around January 19, 2024, the offering's net proceeds are earmarked for scaling operations to accommodate Medicare Part B patients, following CMS's establishment of coverage and proposed pricing for Myomo's MyoPro product line. Plans include hiring approximately 50 new staff members over the next six months to boost clinical, reimbursement, and manufacturing capacities, as well as for general corporate purposes like inventory purchases, capital expenditures, research and development, and sales and marketing activities.
A.G.P./Alliance Global Partners (NYSE:GLP) is serving as the sole placement agent for the transaction.
Myomo's MyoPro is the only marketed device that can restore the ability to perform daily activities by sensing a patient's electromyography (EMG) signals through non-invasive sensors on the arm. This technology aids individuals affected by various neuromuscular diseases or injuries.
This news is based on a press release statement.
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