Modular Medical (MODD) said Thursday it executed definitive subscription agreements with investors for a private placement expected to generate gross proceeds of about $12 million.
The private placement involves the sale of units at $1.92 each, with each unit consisting of two shares and one warrant to buy one share, the company said.
Modular Medical said it will issue about 12.5 million shares and warrants to buy about 6.2 million shares, it said.
The private placement is expected to close on or about March 25 and the proceeds would be used for supply-chain optimization and margin improvement on its MODD1 product, Modular said.
The company said it's also launching a direct placement of up to 446,429 additional units for additional gross proceeds of up to $500,000 on the same terms as the private placement.
Modular shares were falling past 4% in recent trading.
Price: 0.91, Change: -0.04, Percent Change: -4.21
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.