Wearable Devices Ltd. Announces a Warrant Inducement Transaction for $1.2 Million in Gross Proceeds
Wearable Devices has secured $1.2 million in gross proceeds through a warrant inducement transaction with an existing institutional investor. The deal involves the immediate exercise of warrants to purchase 830,500 ordinary shares at a reduced price of $1.45 per share.
As part of the agreement, the investor will receive new unregistered warrants to purchase up to 1,661,000 ordinary shares through a private placement. These new warrants will:
- Have an exercise price of $1.45 per share
- Be exercisable upon issuance
- Expire in five years
The transaction is expected to close around April 30, 2025. The company plans to use the proceeds for working capital and general corporate purposes. The private placement relies on exemptions under Section 4(a)(2) of the Securities Act and Regulation D.
Wearable Devices ha ottenuto 1,2 milioni di dollari di proventi lordi tramite una transazione di incentivo all'esercizio di warrant con un investitore istituzionale esistente. L'accordo prevede l'esercizio immediato di warrant per l'acquisto di 830.500 azioni ordinarie a un prezzo ridotto di 1,45 dollari per azione.
Come parte dell'accordo, l'investitore riceverà nuovi warrant non registrati per acquistare fino a 1.661.000 azioni ordinarie tramite un collocamento privato. Questi nuovi warrant avranno le seguenti caratteristiche:
- Prezzo di esercizio di 1,45 dollari per azione
- Esigibili al momento dell'emissione
- Scadenza entro cinque anni
La transazione dovrebbe concludersi intorno al 30 aprile 2025. La società intende utilizzare i proventi per il capitale circolante e scopi aziendali generali. Il collocamento privato si basa su esenzioni ai sensi della Sezione 4(a)(2) del Securities Act e del Regolamento D.
Wearable Devices ha asegurado 1,2 millones de dólares en ingresos brutos mediante una transacción de incentivo para el ejercicio de warrants con un inversor institucional existente. El acuerdo implica el ejercicio inmediato de warrants para comprar 830,500 acciones ordinarias a un precio reducido de 1,45 dólares por acción.
Como parte del acuerdo, el inversor recibirá nuevos warrants no registrados para comprar hasta 1,661,000 acciones ordinarias a través de una colocación privada. Estos nuevos warrants:
- Tendrán un precio de ejercicio de 1,45 dólares por acción
- Serán ejercibles al momento de su emisión
- Caducarán en cinco años
Se espera que la transacción se cierre alrededor del 30 de abril de 2025. La compañía planea usar los ingresos para capital de trabajo y propósitos corporativos generales. La colocación privada se basa en exenciones bajo la Sección 4(a)(2) de la Ley de Valores y el Reglamento D.
웨어러블 디바이스는 기존 기관 투자자와의 워런트 인센티브 거래를 통해 총 120만 달러의 자금을 확보했습니다. 이 거래는 83만 500주의 보통주를 주당 1.45달러의 할인된 가격으로 즉시 워런트를 행사하는 내용을 포함합니다.
계약의 일환으로 투자자는 사모 배정을 통해 최대 1,661,000주의 보통주를 구매할 수 있는 신규 미등록 워런트를 받게 됩니다. 이 신규 워런트는 다음과 같은 조건을 가집니다:
- 행사가격은 주당 1.45달러
- 발행 즉시 행사 가능
- 만료 기간은 5년
이 거래는 2025년 4월 30일경에 마무리될 예정입니다. 회사는 자금을 운전자본 및 일반 기업 목적에 사용할 계획입니다. 이 사모 배정은 증권법 섹션 4(a)(2) 및 규정 D에 따른 면제 조항을 근거로 합니다.
Wearable Devices a sécurisé 1,2 million de dollars de recettes brutes grâce à une opération d'incitation à l'exercice de bons de souscription avec un investisseur institutionnel existant. L'accord prévoit l'exercice immédiat de bons permettant l'achat de 830 500 actions ordinaires à un prix réduit de 1,45 dollar par action.
Dans le cadre de cet accord, l'investisseur recevra de nouveaux bons non enregistrés lui permettant d'acheter jusqu'à 1 661 000 actions ordinaires par le biais d'un placement privé. Ces nouveaux bons auront les caractéristiques suivantes :
- Prix d'exercice de 1,45 dollar par action
- Exerçables dès leur émission
- Expiration dans cinq ans
La transaction devrait se clôturer aux alentours du 30 avril 2025. La société prévoit d'utiliser les fonds pour le fonds de roulement et des besoins généraux d'entreprise. Le placement privé s'appuie sur des exemptions prévues par la Section 4(a)(2) du Securities Act et le Règlement D.
Wearable Devices hat durch eine Anreiztransaktion für Optionsscheine mit einem bestehenden institutionellen Investor 1,2 Millionen US-Dollar Bruttoerlös erzielt. Die Vereinbarung umfasst die sofortige Ausübung von Optionsscheinen zum Kauf von 830.500 Stammaktien zu einem reduzierten Preis von 1,45 US-Dollar pro Aktie.
Im Rahmen der Vereinbarung erhält der Investor neue nicht registrierte Optionsscheine zum Kauf von bis zu 1.661.000 Stammaktien im Rahmen einer Privatplatzierung. Diese neuen Optionsscheine werden:
- einen Ausübungspreis von 1,45 US-Dollar pro Aktie haben
- sofort bei Ausgabe ausübbar sein
- in fünf Jahren verfallen
Der Abschluss der Transaktion wird für etwa den 30. April 2025 erwartet. Das Unternehmen plant, die Erlöse für das Betriebskapital und allgemeine Unternehmenszwecke zu verwenden. Die Privatplatzierung basiert auf Ausnahmen gemäß Abschnitt 4(a)(2) des Securities Act und Regulation D.
- Secured immediate $1.2M in gross proceeds from warrant exercise
- Institutional investor participation demonstrates market confidence
- Warrant exercise price reduced to $1.45, indicating potential share price pressure
- Issuance of 1,661,000 new warrants may lead to future dilution
- Additional share dilution from immediate exercise of 830,500 existing warrants
Insights
Wearable Devices raises $1.2M via warrant exercise but creates significant future dilution potential through new warrant issuance.
Wearable Devices Ltd. has engineered a $1.2 million capital raise through a strategic warrant inducement transaction. The company convinced an existing institutional investor to exercise warrants for 830,500 ordinary shares at a reduced price of
The transaction structure reveals important nuances. In exchange for the early warrant exercise, the company is issuing new warrants for 1,661,000 shares - a 2:1 ratio compared to the exercised amount. These new warrants have a five-year term, creating a significant overhang of potential future dilution.
The relatively generic stated use of proceeds for "working capital and general corporate purposes" provides limited insight into specific strategic initiatives. Companies typically use this language when funds are needed for ongoing operations rather than defined growth projects.
The transaction terms - particularly the reduced exercise price and the substantial issuance of new warrants - suggest Wearable Devices placed high priority on securing immediate capital. For a company in the competitive AI-based wearable technology sector, this cash infusion provides operational runway, but the dilutive potential creates a meaningful offset to this benefit.
While the transaction successfully addresses immediate liquidity needs, the dilutive structure raises questions about the company's leverage in capital raising negotiations and their longer-term financing strategy.
Wearable Devices Ltd. Announces a Warrant Inducement Transaction for
Yokneam Illit, Israel, April 29, 2025 (GLOBE NEWSWIRE) -- Wearable Devices Ltd. (the “Company” or “Wearable Devices”) (Nasdaq: WLDS, WLDSW), an award-winning pioneer in artificial intelligence (“AI”)-based wearable gesture control technology, today announced its entry into a warrant inducement agreement with an existing institutional investor of the Company for the immediate exercise of warrants to purchase up to 625,000 of its ordinary shares (the “January Warrants”), and warrants to purchase up to 205,500 of its ordinary shares (the “November Warrants”, and together with the January Warrants the “Existing Warrants”), at a reduced exercise price of
In consideration for the immediate exercise in full of the Existing Warrants, the investor will receive, in a private placement (the “Concurrent Private Placement”), new unregistered warrants to purchase up to 1,661,000 of its ordinary shares (the “New Warrants”). The New Warrants will have an exercise price of
The private placement of the New Warrants and the ordinary shares underlying the New Warrants offered to the institutional investor will be made in reliance on an exemption from registration under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”) and Regulation D promulgated thereunder. Accordingly, the securities issued in the Concurrent Private Placement may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in this Offering, 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 other jurisdiction.
About Wearable Devices Ltd.
Wearable Devices Ltd. is a pioneering growth company revolutionizing human-computer interaction through its AI-powered neural input technology for both consumer and business markets. Leveraging proprietary sensors, software, and advanced AI algorithms, the Company’s innovative products, including the Mudra Band for iOS and Mudra Link for Android, enable seamless, touch-free interaction by transforming subtle finger and wrist movements into intuitive controls. These groundbreaking solutions enhance gaming, and the rapidly expanding AR/VR/XR landscapes. The Company offers a dual-channel business model: direct-to-consumer sales and enterprise licensing. Its flagship Mudra Band integrates functional and stylish design with cutting-edge AI to empower consumers, while its enterprise solutions provide businesses with the tools to deliver immersive and interactive experiences. By setting the input standard for the XR market, Wearable Devices is redefining user experiences and driving innovation in one of the fastest-growing tech sectors. Wearable Devices’ ordinary shares and warrants trade on the Nasdaq under the symbols “WLDS” and “WLDSW,” respectively.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be covered by the “safe harbor” created by those sections. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as “believe,” “expect,” “may,” “should,” “could,” “seek,” “intend,” “plan,” “goal,” “estimate,” “anticipate,” “will” or other comparable terms. For example, we are using forward-looking statements when we discuss the expected closing date of the warrant inducement transaction, the use of proceeds, and the satisfaction of customary closing conditions. All statements other than statements of historical facts included in this press release regarding our strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: the trading of our ordinary shares or warrants and the development of a liquid trading market; our ability to successfully market our products and services; the acceptance of our products and services by customers; our continued ability to pay operating costs and ability to meet demand for our products and services; the amount and nature of competition from other security and telecom products and services; the effects of changes in the cybersecurity and telecom markets; our ability to successfully develop new products and services; our success establishing and maintaining collaborative, strategic alliance agreements, licensing and supplier arrangements; our ability to comply with applicable regulations; and the other risks and uncertainties described in our annual report on Form 20-F for the year ended December 31, 2024, filed on March 20, 2025 and our other filings with the SEC. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
Investor Relations Contact
Michal Efraty
IR@wearabledevices.co.il
FAQ
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