Myomo to sell 1.578M shares at $3.80 in registered direct offering

Myomo announced that it has entered into securities purchase agreements with certain new and existing institutional investors as well as certain insiders of the company for the purchase and sale of 1,578,948 shares of common stock at a purchase price of $3.80 per share, which was the closing price of the company’s common stock traded on the NYSE American on January 16, pursuant to a registered direct offering, resulting in total gross proceeds of approximately $6M before deducting placement agent commissions and other offering expenses. In conjunction with conducting this offering, the company disclosed that its existing cash, plus the proceeds from this offering are expected to be sufficient to achieve cash flow breakeven on a quarterly basis, which the company believes is achievable by the fourth quarter of 2024, assuming the final fee from the Centers for Medicare and Medicaid Services, or CMS, is not significantly lower than the currently published preliminary fee, the company can hire the personnel necessary to increase its clinical, reimbursement and manufacturing capacity as planned and there are no unusual supply chain disruptions. The closing of the offering is expected to occur on or about January 19, subject to the satisfaction of customary closing conditions. The company intends to use the net proceeds from the offering to scale up operations to serve Medicare Part B patients now that CMS has established coverage and proposed pricing for the MyoPro product line. This includes the hiring of approximately 50 people over the next six months to increase its clinical, reimbursement and manufacturing capacity to serve this anticipated increased volume from Medicare Part B beneficiaries.