WLDS Stock Gains Premarket On Securing $5.7M Through Warrant Inducement Deal

• Wearable Devices said that it intends to use the net proceeds from the warrant inducement transaction to meet its working capital and other general corporate requirements.
• The new warrants will have an exercise price of $1.86 per share and will expire five years following the approval date.
• Wearable Devices said the closing of the warrant inducement transaction is expected to occur on or about December 1.

Wearable Devices (WLDS) stock rose nearly 5% in pre-market trading on Friday after the company announced that it entered into a warrant inducement agreement with an existing institutional investor to allow the immediate exercise of warrants to purchase up to 3.3 million shares.

The company said that the purchase of the shares is for an exercise price of $1.71 per share and results in gross cash proceeds of about $5.68 million.

Wearable Devices said that it intends to use the net proceeds from the warrant inducement transaction for working capital and other general corporate purposes.

Details Of The Agreement

Wearable Devices stated that, in consideration of the immediate exercise of existing warrants in full for cash, it has agreed to issue new unregistered warrants to the investor to purchase up to 5.81 million shares via a private placement.

The new warrants will have an exercise price of $1.86 per share and will expire five years following the approval date. Wearable Devices said the closing of the warrant inducement transaction is expected to occur on or about December 1.

Previous Registered Offering

In September, the company had announced a $4 million registered direct offering and concurrent private placement. The company said it has entered into a securities purchase agreement with a single institutional investor for the purchase and sale of one million ordinary shares at a purchase price of $4 apiece in a registered direct offering.

Retail sentiment remained unchanged in the ‘bearish’ territory, with message volumes at ‘extremely low’ levels, according to data from Stocktwits.

Shares of Wearable Devices have declined by over 77% this year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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