Microbot Medical shares took a hit, dropping 20% to $1.64, following the immediate exercise of certain outstanding preferred investment options. These options allowed for the purchase of up to 1.7 million shares.
Despite a 55% increase in the stock during Thursday's session, Microbot shares have experienced a 47% decline over the past year.
The options were originally issued by Microbot in October 2022 and June 2023, with exercise prices ranging from $2.075 to $3.19 per share. However, they were exercised at a reduced exercise price of $1.62 per share.
The closing of this offering is expected to take place on or about Wednesday.
In exchange for the immediate exercise of these preferred investment options, Microbot will issue new unregistered series E preferred investment options. These options will allow for the purchase of up to 1.7 million shares.
It is anticipated that the proceeds from the exercise of these preferred investment options will amount to $2.73 million.
Microbot plans to utilize the funds raised from this offering for the ongoing development, commercialization, and regulatory activities related to its Liberty Robotic System. Additionally, the funds will be allocated towards working capital and other general corporate purposes.