ReWalk Robotics (RWLK) Stock: Flying On Funding News

Rewalk Robotics RWLK Stock News

ReWalk Robotics Ltd (NASDAQ: RWLK) is flying early on in the trading session after the company announced funding news. According to a press release, the exercise of of warrants has resulted in more than $10 million in funding.

As you could imagine, the news excited investors, who have pushed the stock up by more than 150% early on in the trading session this morning. Today, we’ll talk about:

  • The funding news;
  • what we’re seeing from RWLK stock as a result; and
  • what we’ll be watching for ahead.

RWLK Stock Gains On Funding News

As mentioned above, ReWalk Robotics is having a great day in the market today after announcing funding news via press release. In the release, the company said that it has reached an agreement with several accredited investors of its ordinary share purchase warrants.

Under the terms of the agreement, the investors will exercise and purchase 1,446,665 ordinary shares at a price of $7.50 per share. RWLK said that the gross proceeds from the transaction are expected to come in at about $10.8 million. Of course, that figure is before subtracting placement agent fees and estimated offering expenses.

The company said that it intends on using the funds for sales, marketing and reimbursement expenses related to market development activities of the ReStore device. The company will also use the funding to broaden third-party payor coverage for the ReWalk Personal device.

RWLK also said that funds are expected to be used for research and development costs related to the development of its lightweight exo-suit technology for various lower limb disabilities.

Why This Is So Important

First and foremost, the exercise of warrants will lead to shares being issued. However, they are being purchased at a premium through this transaction. That alone is enough to excite investors.

However, there’s more to the ReWalk story than that. The truth of the matter is that the company was in need of funding. Without a transaction like this, it was highly likely that we would see a dilutive offering at which the company would have to sell issued shares at a discount. Any avoidance of this type of move is great news.

What We’re Seeing From The Stock 

As a result of the news, excited investors are pushing ReWalk Robotics for some serious gains. In fact, the stock is trading at $8.61 per share after a gain of $5.29 per share or 159.43% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on RWLK. In particular, we’re interested in following the use of these funds and excited to see what comes next in the development of the company’s exo-suit. Nonetheless, we’ll keep a close eye on the story and bring the news to you as it breaks!

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