Modular Medical Announces Pricing of $4.68 Million Public Offering

Rhea-AI Summary

Modular Medical (Nasdaq:MODD) priced an underwritten public offering of 12,173,000 common shares with accompanying warrants to purchase 6,086,500 shares.

Shares and warrants are sold in a 2-for-1 pairing at a combined public offering price of $0.77 (effective price $0.38 per share and $0.01 per warrant). Warrants carry a $0.45 exercise price and expire five years after issuance. The offering may include a 30-day underwriter option to buy up to an additional 15% of shares and/or warrants.

Assuming no over-allotment, gross proceeds are expected to be approximately $4.68 million; net proceeds will fund operations, working capital and capital expenditures. Closing is expected on or about December 11, 2025. The offering is being made from an SEC-effective Form S-3 shelf registration (File No. 333-287313).

Positive

• Gross proceeds of $4.68 million
• Warrants exercisable immediately, adding potential future capital
• Offering conducted under an SEC-effective Form S-3 shelf

Negative

• Large share issuance: 12,173,000 new shares
• Effective low price of $0.38 per share implies dilution
• Underwriter 30-day option up to 15%, increasing dilution risk

Key Figures

Gross proceeds $4.68 million Expected gross proceeds from this underwritten public offering, before expenses

Shares offered 12,173,000 shares Common stock in the offering, excluding any over-allotment

Warrants offered 6,086,500 warrants Accompanying warrants to purchase common stock in the offering

Combined offering price $0.77 Per two shares of common stock plus one accompanying warrant

Effective share price $0.38 per share Implied price per common share in the unit structure

Warrant exercise price $0.45 per share Exercise price for warrants issued in the offering

Over-allotment option 30 days, up to 15% Underwriter option for additional common shares and/or warrants

Warrant term 5 years Warrants expire five years after issuance

Market Reality Check

$0.3140 Last Close

Volume Volume 126,108 is at 0.42x the 20-day average of 303,149, indicating subdued trading ahead of the offering close. low

Technical Shares at $0.4516 trade 74.8% below the 52-week high of $1.7923 and below the $0.75 200-day MA, reflecting a weak longer-term trend.

Peers on Argus 2 Up

MODD was flagged with a down bias while momentum scanner peers like NMTC and COCH showed 4.27% and 4.64% upside moves, respectively. Broader medical device peers displayed mixed single-day changes, suggesting the offering-driven pressure was more stock-specific than sector-wide.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 09	Offering announcement	Neutral	+2.1%	Company commenced an underwritten public offering of shares and warrants.
Nov 17	IRB study approval	Positive	-2.6%	IRB approval for in-house study using Pivot patch pump with CGMs.
Nov 14	FDA 510(k) submission	Positive	+11.2%	Submitted Pivot tubeless patch pump for FDA 510(k) clearance.
Nov 03	Manufacturing validation	Positive	+12.4%	Validated Pivot controller manufacturing line for high-volume production.
Oct 28	CE Mark progress	Positive	-1.3%	Reported Stage 1 ISO 13485 audit success toward CE Mark certification.

Pattern Detected

Recent positive operational milestones (Pivot submission, manufacturing validation) often coincided with strong gains, while regulatory/approval progress and IRB news saw occasional negative reactions. Offering- and financing-related headlines have produced relatively modest price moves compared with product catalysts.

Recent Company History

Over the last few months, Modular Medical reported several key Pivot milestones, including controller line validation on Nov 3, 2025 and a 510(k) submission on Nov 14, 2025, both followed by double-digit percentage gains. Regulatory progress toward a CE Mark and IRB approval for an in-house study brought more muted or negative reactions. On Dec 9, 2025, the company announced a proposed underwritten offering. Today’s pricing announcement continues that financing sequence against a backdrop of ongoing commercialization preparations.

Market Pulse Summary

This announcement finalizes terms for a capital raise of $4.68 million in gross proceeds through 12,173,000 shares and 6,086,500 accompanying warrants, priced at a combined $0.77 per two shares plus one warrant. It follows yesterday’s proposed offering and recent Pivot regulatory milestones. Key factors to monitor include the closing on or about December 11, 2025, any use of the 15% over-allotment, and how the enlarged capital structure interacts with upcoming product and approval catalysts.

Key Terms

underwritten public offering financial

"it has priced an underwritten public offering (the "offering") of 12,173,000"

An underwritten public offering is when a company sells new shares of its stock to the public with the help of a financial firm, called an underwriter. The underwriter agrees to buy all the shares upfront, reducing the company's risk, and then sells them to investors. This process helps companies raise money quickly and confidently from a wide range of buyers.

warrants financial

"shares of its common stock and accompanying warrants to purchase 6,086,500"

Warrants are special documents that give you the right to buy a company's stock at a set price before a certain date. They are often used as a way for companies to attract investors or raise money, and their value can increase if the company's stock price goes up.

exercise price financial

"The warrants will have an exercise price of $0.45 per share"

The exercise price is the fixed amount at which you can buy or sell an asset, like a stock, when using an options contract. It matters because it helps determine whether exercising the option will be profitable or not, depending on the current market price. Think of it as the set price you agree on today to buy or sell later.

over-allotment option financial

"has granted the underwriter a 30-day option to purchase up to an additional 15%"

An over-allotment option is a special agreement that allows underwriters to sell more shares than initially planned if demand is high. Think of it like a retailer offering extra units of a popular product to meet additional customer interest. This option helps ensure the full sale is completed and can also give investors extra shares if they want more.

shelf registration statement regulatory

"pursuant to an effective "shelf" registration statement on Form S-3"

A shelf registration statement is a document a company files with regulators that allows it to sell shares or bonds quickly when it’s a good time to raise money. It’s like having a pre-approved plan ready so the company can act fast without going through lengthy paperwork each time they want to sell, making fundraising more flexible.

form s-3 regulatory

"registration statement on Form S-3 (File No. 333-287313) previously filed"

Form S-3 is a legal document companies use to register their stock sales with the government, making it easier and faster for them to raise money by selling shares to investors. It’s like having a pre-approved shopping list that lets a company quickly sell new shares when they need funds, without going through a lengthy approval process each time.

prospectus supplement regulatory

"A preliminary prospectus supplement and the accompanying prospectus relating"

A prospectus supplement is an additional document provided alongside a company's main offering details, offering updated or extra information about a specific financial product being sold. It helps investors understand the latest terms, risks, and details of the investment, similar to how an update or revision clarifies or expands on original instructions, ensuring they have current and complete information before making a decision.

510(k) regulatory

"awaits FDA feedback on a recent Pivot 510(k) submission"

A 510(k) is a U.S. regulatory submission that a medical device maker uses to show a new device is as safe and effective as an already-approved device, allowing the regulator to clear it for sale rather than requiring the longer, more stringent approval process. For investors, a cleared 510(k) usually means lower regulatory risk and a faster path to market, which can speed revenue generation and reduce uncertainty—similar to proving a new appliance works like a trusted existing model.

AI-generated analysis. Not financial advice.

SAN DIEGO, CA / ACCESS Newswire / December 10, 2025 / Modular Medical, Inc. (Nasdaq:MODD) ("Modular Medical" or the "Company"), an insulin delivery technology company with the first FDA-cleared patch pump designed specifically to target all adult "almost-pumpers" with its user-friendly and affordable design, today announced that it has priced an underwritten public offering (the "offering") of 12,173,000 shares of its common stock and accompanying warrants to purchase 6,086,500 shares of its common stock. Each two shares of common stock are being offered and sold together with one accompanying warrant at a combined offering at a price of $0.77, yielding an effective price of $0.38 per share and $0.01 per warrant. The warrants will have an exercise price of $0.45 per share, are exercisable immediately upon issuance and will expire five years following the date of issuance.

In connection with the offering, Modular Medical has granted the underwriter a 30-day option to purchase up to an additional 15% of common shares and/or warrants at the public offering price, less underwriting discounts and commissions. The over-allotment option may be elected with respect to, at the underwriter's sole discretion, shares and warrants together, solely shares, solely warrants, or any combination thereof.

Newbridge Securities Corporation is acting as the sole bookrunner for the offering.

Assuming no exercise of the over-allotment option, the gross proceeds to the Company from the offering are expected to be approximately $4.68 million, before deducting underwriting discounts, commissions, and estimated offering expenses payable by the Company. The Company intends to use the net proceeds from the offering to fund operations and for working capital and general corporate purposes, including capital expenditures.

The offering is expected to close on or about December 11, 2025, subject to the satisfaction of customary closing conditions.

The securities described above were offered by Modular Medical pursuant to an effective "shelf" registration statement on Form S-3 (File No. 333-287313) previously filed with the Securities and Exchange Commission (the "SEC") on May 15, 2025 and declared effective by the SEC on May 22, 2025. 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. The final prospectus supplement relating to the offering will be 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 Newbridge Securities Corporation, Attn: Equity Syndicate Department, 1200 North Federal Highway, Suite 400, Boca Raton, Florida 33432, by email at syndicate@newbridgesecurities.com or by telephone at (877) 447-9625.

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 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. Its 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.

All trademarks mentioned herein are the property of their respective owners.

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 satisfaction of customary closing conditions related to the offering, the expected closing date of the offering and the expected use of proceeds, 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.

View the original press release on ACCESS Newswire

FAQ

What did Modular Medical (MODD) announce on December 10, 2025?

Modular Medical priced an offering of 12,173,000 common shares with warrants for expected gross proceeds of $4.68 million.

How are the MODD shares and warrants structured in the offering?

Each offering unit contains 2 shares plus 1 warrant; combined price is $0.77 per unit.

What are the MODD warrant terms and exercise price?

Warrants are immediately exercisable, expire in 5 years, with an exercise price of $0.45 per share.

When is the MODD offering expected to close and how will proceeds be used?

The offering is expected to close on or about December 11, 2025; net proceeds will fund operations, working capital, and capital expenditures.

Can the MODD offering size increase after pricing?

Yes; the underwriter has a 30-day option to purchase up to an additional 15% of shares and/or warrants at the public offering price.