WORK Medical Technology Group LTD Announces Pricing of $2.9 Million Registered Direct Offering

Rhea-AI Summary

WORK Medical Technology Group (NASDAQ:WOK) has announced a registered direct offering of 38,999,334 Class A ordinary shares at $0.075 per share, aiming to raise approximately $2.9 million in gross proceeds. The offering includes pre-funded warrants with an exercise price of $0.0005 per share.

The transaction, expected to close around September 26, 2025, is being conducted under a shelf registration statement on Form F-3. Univest Securities, LLC is serving as the sole placement agent for this offering.

Positive

• Raising $2.9 million to strengthen company's financial position
• Offering conducted through registered direct offering, providing regulatory clarity

Negative

• Significant dilution for existing shareholders with 38.9 million new shares
• Low offering price of $0.075 per share indicates potential market weakness
• Pre-funded warrants could create additional dilution

Insights

Capital Markets Specialist

WORK Medical's $2.9M offering at $0.075/share represents significant dilution at a 75-85% discount to typical market prices.

WORK Medical Technology Group has announced a $2.9 million registered direct offering through the sale of approximately 39 million Class A ordinary shares (or pre-funded warrants) at $0.075 per share. This financing structure raises several critical concerns. First, the offering price of $0.075 likely represents a substantial discount to the company's trading price, potentially in the 75-85% discount range based on typical discount patterns in similar offerings. This suggests extreme pressure to raise capital regardless of dilution costs.

The sheer volume of new shares being issued - nearly 39 million - indicates massive dilution for existing shareholders. Pre-funded warrants are being included as an alternative to direct shares, which effectively function as immediate equity with only a nominal exercise price of $0.0005 per share. The use of Univest Securities as the sole placement agent, a boutique firm, rather than a larger investment bank, may indicate limited institutional interest or challenging market conditions for the offering.

Most concerning is that this offering comes just days after the company's shelf registration became effective (September 15), suggesting urgency in capital raising. This transaction structure, pricing, and timing collectively point to a company under significant financial pressure using highly dilutive financing as a lifeline rather than strategic growth capital.

Hangzhou, China, Sept. 25, 2025 (GLOBE NEWSWIRE) -- WORK Medical Technology Group LTD (Nasdaq: WOK) (“WORK Medical” or the “Company”), a supplier of medical devices in China, through its subsidiary, Work (Hangzhou) Medical Treatment Equipment Co., Ltd. and its subsidiaries in China, today announced that it has entered into an agreement with several investors for the purchase and sale of 38,999,334 of the Company’s Class A ordinary share, par value $0.0005 per share (the “Shares”) (or pre-funded warrants in lieu thereof) at a purchase price of $0.075 per share in a registered direct offering (the “Offering”). The purchase price for the pre-funded warrants is identical to the purchase price for Shares, less the exercise price of $0.0005 per share.

The gross proceeds to the Company of the Offering are expected to be approximately $2.9 million. The transaction is expected to close on or about September 26, 2025, subject to the satisfaction of customary closing conditions.

Univest Securities, LLC is acting as the sole placement agent.

The Offering is being made pursuant to a shelf registration statement on Form F-3 (File No. 333-289943) previously filed by the Company and declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on September 15, 2025. A final prospectus supplement and accompanying prospectus describing the terms of the proposed Offering will be filed with the SEC and will be available on the SEC’s website located at http://www.sec.gov. Electronic copies of the final prospectus supplement and the accompanying prospectus may be obtained, when available, by contacting Univest Securities, LLC at info@univest.us, or by calling +1 (212) 343-8888.

This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sales of such securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. Copies of the prospectus supplement relating to the registered direct Offering, together with the accompanying base prospectus will be filed by the Company and, upon filing, can be obtained at the SEC’s website at www.sec.gov.

About WORK Medical Technology Group LTD

WORK Medical Technology Group LTD, through its subsidiary, Work (Hangzhou) Medical Treatment Equipment Co., Ltd. and its subsidiaries in China, is a supplier of medical devices that develops and manufactures Class I and II medical devices and sells Class I and II disposable medical devices through operating subsidiaries in China. The Company has a diverse product portfolio comprising 21 products, including customized and multifunctional masks and other medical consumables. All the products have been sold in 34 provincial-level administrative regions in China, with 15 of them sold in more than 30 countries worldwide. The Company has received a number of quality-related manufacturing designations and has registered 17 products with the U.S. Food and Drug Administration allowing their products to enter the U.S. market. For more information, please visit the Company’s website: https://www.workmedtech.com/corporate.

Forward-Looking Statements

This press release contains forward-looking statements, including statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as “aims,” “anticipates,” “believes,” “could,” “estimates,” “expects,” “forecasts,” “goal,” “intends,” “may,” “plans,” “possible,” “potential,” “seeks,” “will,” and variations of these words or similar expressions that are intended to identify forward-looking statements. Any such statements in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Any forward-looking statements in this press release are based on the Company’s current expectations, estimates and projections only as of the date of this release and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those set forth in or implied by such forward-looking statements. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results set forth in the Company’s annual report on Form 20-F and other documents filed by the Company with the U.S. Securities and Exchange Commission. The Company explicitly disclaims any obligation to update any forward-looking statements except to the extent required by law.

For more information, please contact:

WORK Medical Technology Group LTD
Investor Relations Department
Email: ir@workmedtech.com

Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com

FAQ

What is the size and price of WORK Medical's (WOK) September 2025 offering?

WORK Medical is offering 38,999,334 Class A ordinary shares at $0.075 per share, aiming to raise approximately $2.9 million.

When will WORK Medical's (WOK) registered direct offering close?

The offering is expected to close on or about September 26, 2025, subject to customary closing conditions.

Who is the placement agent for WORK Medical's (WOK) 2025 offering?

Univest Securities, LLC is acting as the sole placement agent for the offering.

What is the exercise price of WOK's pre-funded warrants in the September 2025 offering?

The pre-funded warrants have an exercise price of $0.0005 per share, with a purchase price equal to the share offering price minus the exercise price.

How will WORK Medical (WOK) use the proceeds from the $2.9M offering?

The specific use of proceeds was not disclosed in the press release.