Boston-based Myomo (NYSE:MYO) has announced the pricing of a $15 million underwritten common stock offering. The wearable exoskeleton company is releasing 3 million shares at $5 each. Buyers have a 30-day window to purchase up to an additional 450,000 shares at the same public offering price.
Before accounting for any applicable discounts or costs, Myomo expects to secure the $15 million in proceeds, with the deal anticipated to conclude around December 6. The sole underwriting role for this transaction was handled by Craig-Hallum Capital Group.
The company intends to use the generated funds, along with current cash reserves, to propel its revenue increase. Part of the investment will focus on boosting advertising activities and increasing personnel to cater to predicted growth in its direct billing channel. An investment in supporting infrastructure for its O&P channel and enhancing operational scale is also planned.
Moreover, the fund will contribute to product development and ongoing engineering efforts, aiming to improve the MyoPro product range and design future innovations. Remaining funds will cover working capital and other general company needs.
Earlier this year, Myomo expressed optimism regarding its direction, expecting gains from a new Medicare policy which reclassifies its technology as a brace, offering lump-sum payment benefits.
The CMS fees officially came into effect on April 1, although billing contractors are still establishing the payment rates for their clients. At the year’s start, Myomo generated $6 million, pledging enhancements in its clinical, reimbursement, and manufacturing solutions. In March, the company projected the hiring of about 50 new employees over the subsequent six months.