Modular Medical Announces Pricing of $10 Million Public Offering
- Modular Medical, Inc. is conducting a public offering of 9,090,910 shares of common stock at $1.10 per share.
- The offering is led by Manchester Explorer, L.P., managed by Modular Medical's CEO and a board member, along with existing institutional investors.
- The gross proceeds from the offering are expected to be around $10 million before deductions.
- The net proceeds will be used for funding operations, working capital, and general corporate purposes, including capital expenditures.
- Titan Partners Group, a division of American Capital Partners, is the sole book-running manager for the offering.
- None.
The announcement by Modular Medical, Inc. regarding its public offering of shares is a significant event for the company and its investors. The pricing of the shares at $1.10, which is a fixed data point, provides a benchmark for the market to value the company's equity. The capital raise of approximately $10 million, before fees and expenses, suggests a strategic move to bolster the company's financial position. Considering the company's development stage status, the influx of funds is likely earmarked for advancing their insulin pump technology, which could be critical in achieving regulatory milestones and commercialization.
It is noteworthy that the offering is led by insiders, including the CEO and a board member, which could be interpreted as a strong vote of confidence in the company's prospects. However, investors should also consider the potential dilution effect of the new shares on existing shareholders' equity. The involvement of Titan Partners Group as the sole book-runner indicates professional backing for the offering, potentially enhancing investor confidence.
Modular Medical's focus on developing next-generation insulin delivery technology is indicative of the ongoing innovation within the diabetes care market. Insulin pumps are a critical component in the management of diabetes, particularly for individuals requiring intensive insulin therapy. The company's emphasis on creating user-friendly and cost-effective solutions could address a significant market need, as affordability and ease of use are common barriers to insulin pump adoption.
The allocated funds for operations could accelerate the development and testing phases, which are essential for ensuring safety and efficacy. The potential market impact of a successful product launch could be substantial, given the prevalence of diabetes globally. Investors should monitor the company's progress in clinical trials and regulatory approvals, as these are key indicators of future commercial success and could significantly affect the company's valuation.
The capital infusion from the public offering is expected to support Modular Medical's operational needs, which is crucial for a company in the development stage. The diabetes care market is highly competitive, with established players and continuous technological advancements. Modular Medical's ability to secure funding indicates investor interest in innovative medical technologies and the growth potential of the diabetes management sector.
Market trends show an increasing demand for medical devices that enhance quality of life, which includes innovations in insulin delivery systems. The company's strategy to invest in working capital and general corporate purposes reflects a broad focus on strengthening its market position. Long-term success will depend on the company's ability to deliver on its technology promises and capture market share in the face of stiff competition.
SAN DIEGO, CA / ACCESSWIRE / February 15, 2024 / Modular Medical, Inc. (NASDAQ:MODD) ("Modular Medical" or the "Company"), a development stage insulin delivery technology company seeking to launch the next generation of easy to use and affordable insulin pump technology, today announced that it has priced its underwritten public offering (the "offering") of 9,090,910 shares of its common stock, led by Manchester Explorer, L.P., which is managed by Jeb Besser, Modular Medical's Chief Executive Officer, and Morgan Frank, a member of the Company's board of directors, and other existing institutional investors. The shares of common stock are being sold at a price to the public of
Titan Partners Group, a division of American Capital Partners, is acting as sole book-running manager for the offering.
The gross proceeds to the Company from the offering are expected to be approximately
The securities described above were offered by Modular Medical pursuant to an effective "shelf" registration statement on Form S-3 (File No. 333-264193) previously filed with the Securities and Exchange Commission (the "SEC") on April 8, 2022, as amended on April 15, 2022, and declared effective by the SEC on April 19, 2022. The securities may be offered only by means of a prospectus. A preliminary prospectus supplement and the accompanying prospectus relating to and describing the terms of the offering have been filed with the SEC. Electronic copies of the preliminary prospectus and, when available, copies of the final prospectus supplement and the accompanying prospectus relating to the offering may be obtained by visiting the SEC's website at www.sec.gov or by contacting Titan Partners Group LLC, a division of American Capital Partners, LLC, 4 World Trade Center, 29th Floor, New York, New York 10007, by phone at (929) 833-1246 or by email at info@titanpartnersgrp.com.
This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.
About Modular Medical
Modular Medical, Inc. (NASDAQ:MODD) is a development-stage medical device company that intends to launch the next generation of insulin delivery technology. Using its patented technologies, the Company seeks to eliminate the tradeoff between complexity and efficacy, thereby making top quality insulin delivery both affordable and simple to learn. Our mission is to improve access to the highest standard of glycemic control for people with diabetes taking it beyond "superusers" and providing "diabetes care for the rest of us."
Modular Medical was founded by Paul DiPerna, a seasoned medical device professional and microfluidics engineer. Prior to founding Modular Medical, Mr. DiPerna was the founder (in 2005) of Tandem Diabetes and invented and designed its t:slim insulin pump. More information is available at https://modular-medical.com.
Forward-Looking Statements
This press release contains forward-looking statements that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified through the use of words such as may," "might," "will," "intend," "should," "could," "can," "would," "continue," "expect," "believe," "anticipate," "estimate," "predict," "outlook," "potential," "plan," "seek," and similar expressions and variations or the negatives of these terms or other comparable terminology. Such forward-looking statements are subject to risks, trends, and uncertainties that could cause actual results to be materially different from the forward-looking statements contained in this press release, including the expected closing date of the offering and the expected use of proceeds. These factors include, but are not limited to, whether Modular Medical can successfully develop its proprietary technologies, whether the market will accept Modular Medical's products and services, whether the Company will be issued additional patents for its proprietary technology, Modular Medical's ability to obtain regulatory clearance for its MODD1 product, anticipated consumer demand for its products, whether Modular Medical can successfully manufacture its products at high volumes, general economic, industry or political conditions in the United States or internationally as well as other risk factors and business considerations described in Modular Medical's SEC filings, including its annual report on Form 10-K. Any forward-looking statements in this press release should be evaluated in light of these important risk factors. In addition, any forward-looking statements included in this press release represent Modular Medical's views only as of the date of its publication and should not be relied upon as representing its views as of any subsequent date. Modular Medical assumes no obligation to update these forward-looking statements, except as required by law.
Contact Information
Jeb Besser
Chief Executive Officer
Modular Medical, Inc.
+1 (617) 399-1741
IR@modular-medical.com
SOURCE: Modular Medical, Inc.
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