Modular Medical Announces Proposed Public Offering

Rhea-AI Summary

Modular Medical (NASDAQ:MODD) announced on December 9, 2025 that it has commenced an underwritten public offering of shares of its common stock and warrants to purchase common stock. The common shares and warrants will be issued separately but sold together in the offering. Modular Medical expects to grant the underwriter a 30-day option to purchase up to an additional 15% of the aggregate shares and/or warrants. The offering is being made from an effective Form S-3 shelf registration (File No. 333-287313) declared effective by the SEC on May 22, 2025. Newbridge Securities Corporation is the sole bookrunner. The offering is subject to market conditions and may not be completed as proposed.

Positive

• Offering includes warrants alongside common stock
• Underwriter option provides potential upsizing by 15%

Negative

• Issuance of new shares may dilute existing shareholders
• Completion of the offering is uncertain and market-dependent

Key Figures

30-day option 30 days Underwriter option to purchase up to an additional 15% of the offering

Overallotment size 15% Potential extra shares and/or warrants underwriter may purchase

Gross proceeds $4.4 million Warrant exercise proceeds from Sep 29, 2025 offering-related event

Reduced exercise price $0.68 per share Price for exercised warrants in Sep 29, 2025 event

New warrant exercise price $0.84 per share Exercise price for new unregistered warrants (5-year term)

New warrants issued 3,252,366 warrants Unregistered warrants from Sep 29, 2025 financing event

Ownership stake 3.81% Alyeska group beneficial ownership of MODD common stock

Shares outstanding base 54,247,388 shares Share count used to calculate 3.81% ownership in Schedule 13G/A

Market Reality Check

$0.4516 Last Close

Volume Volume 126,108 is below 20-day average 314,940 (relative volume 0.4x). low

Technical Trading below 200-day MA 0.76 with price at 0.4516, well under 52-week high 1.7923 and closer to the 0.28 low.

Peers on Argus

Peers show mixed moves: ECOR +1.24%, IINN +2.68%, RBOT +3.94% versus MYO -0.95% and NMTC -6.74%, suggesting stock-specific dynamics for MODD.

Common Catalyst Only one peer (IINN) reported news today, related to a patent grant, indicating no broad sector-wide catalyst tied to MODD’s financing announcement.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Nov 17	IRB approval	Positive	-2.6%	IRB approval for in-house study using Pivot tubeless patch pump.
Nov 14	Regulatory submission	Positive	+11.2%	Submission of Pivot tubeless insulin patch pump for FDA 510(k) clearance.
Nov 03	Manufacturing milestone	Positive	+12.4%	Successful validation of Pivot controller manufacturing line for high-volume use.
Oct 28	CE Mark progress	Positive	-1.3%	Stage 1 ISO 13485 audit completed with no major nonconformances.
Oct 06	Leadership appointment	Positive	+0.2%	Appointment of Head of International Operations to drive Pivot rollout.

Pattern Detected

Operational and regulatory progress updates have often been positive, with mixed price reactions: several strong gains on good news but also some selloffs despite constructive developments.

Recent Company History

This announcement follows a series of regulatory and commercialization milestones for Pivot. In October–November 2025, MODD reported CE Mark progress, validation of its Pivot controller line, a 510(k) submission, and IRB approval for an in-house study, with price reactions ranging from -2.63% to +12.37%. Earlier, an offering-type event on Sep 29, 2025 raised about $4.4 million via warrant exercises, supporting working capital as the company advances toward potential FDA clearance and commercialization.

Market Pulse Summary

The stock is dropping -20.9% following this news. A negative reaction despite the financing being positioned to support Pivot commercialization would fit past patterns where constructive news sometimes coincided with selling, such as reactions of -1.3% and -2.63% to positive updates. The proposed underwritten public offering and associated warrants add potential dilution on top of prior warrant-related financing of $4.4 million, which may weigh on sentiment even as the company advances its regulatory and manufacturing milestones.

Key Terms

underwritten public offering financial

"it has commenced an underwritten public offering (the "offering") of shares"

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

"common stock and warrants to purchase shares of its common stock"

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.

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.

AI-generated analysis. Not financial advice.

SAN DIEGO, CA / ACCESS Newswire / December 9, 2025 / Modular Medical, Inc. (NASDAQ:MODD) ("Modular Medical"), 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 commenced an underwritten public offering (the "offering") of shares of its common stock and warrants to purchase shares of its common stock. The shares of the common stock and the accompanying warrants are immediately separable and will be issued separately but can only be purchased together in this offering.

Modular Medical expects to grant the underwriter a 30-day option to purchase up to an additional 15% of the aggregate number of shares of its common stock and /or warrants sold in the offering. The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed or as to the actual size or terms of the offering. All shares of common stock and warrants to be sold in the proposed offering will be sold by Modular Medical.

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

The offering is being made 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 will be filed with the SEC. Electronic copies of the preliminary prospectus supplement and accompanying 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 whether or when the offering may be completed, 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 9, 2025?

Modular Medical announced an underwritten public offering of common stock and warrants and expected a 30-day option to upsell up to 15% additional securities.

How large is the underwriter's option in the MODD offering?

The underwriter may purchase up to an additional 15% of the aggregate number of shares and/or warrants for 30 days.

Where is the MODD offering being registered and when was it declared effective?

The offering is made from a Form S-3 shelf registration (File No. 333-287313) declared effective by the SEC on May 22, 2025.

Who is the sole bookrunner for Modular Medical's (MODD) offering?

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

Will the MODD offering definitely proceed to closing?

No; the offering is subject to market and other conditions and may not be completed as proposed.