Lifeward announces $5 million registered direct offering

MARLBOROUGH, Mass. and YOKNEAM ILIT, Israel - Lifeward Ltd. (NASDAQ: LFWD), a company focused on developing solutions for rehabilitation and recovery for those with physical limitations or disabilities, disclosed a new registered direct offering and concurrent private placement. The announcement comes as the company's stock has shown significant momentum, with a 75% return over the past week according to InvestingPro data. The company plans to sell 1,818,183 ordinary shares at a price of $2.75 per share, aiming to raise approximately $5 million in gross proceeds before deductions for the placement agent's fees and other expenses.

The offering is scheduled to close tomorrow, subject to customary closing conditions. The shares are being sold pursuant to a shelf registration statement previously filed and declared effective. H.C. Wainwright & Co. is serving as the exclusive placement agent for the transaction.

Concurrently, Lifeward will issue warrants in a private placement, which will allow for the purchase of an additional 1,818,183 ordinary shares at the same price of $2.75, exercisable immediately and valid for three years. These warrants and the shares they may convert into are not registered under the Securities Act and are subject to restrictions on resale in the United States.

The company intends to use the net proceeds for commercial efforts, working capital, and general corporate purposes. This capital raise comes at a crucial time, as InvestingPro analysis shows the company is quickly burning through cash despite maintaining more cash than debt on its balance sheet. The offering follows Lifeward's continued efforts to innovate in the field of physical rehabilitation, with products like the ReWalk Exoskeleton and the AlterG Anti-Gravity System. The company has demonstrated strong revenue growth, with sales increasing 173% in the last twelve months.

This press release constitutes neither an offer to sell nor a solicitation of an offer to buy securities, and there will be no sale of these securities in any state or jurisdiction where such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

The forward-looking statements included in the press release, such as the anticipated completion of the offering and the intended use of proceeds, are based on current management expectations and are subject to risks and uncertainties. Lifeward's actual results could differ materially due to various factors, some of which are outside the company's control. InvestingPro subscribers have access to 10+ additional exclusive tips about Lifeward's financial health, market position, and growth prospects, providing crucial insights for investment decisions.

This article is based on a press release statement from Lifeward Ltd. and contains no promotional material or endorsements of the company's claims.

In other recent news, Lifeward Ltd. has announced key developments. The company recently reported Q2 earnings, meeting revenue expectations with a total of $6.7 million and recording a smaller-than-expected net loss per share of $0.50. In response to these results, H.C. Wainwright maintained a Buy rating on Lifeward.

Additionally, Lifeward has decided to directly sell AlterG products in Germany via its sales team, a strategic move projected to increase the company's revenue and profit margins in the region. Lifeward has also made significant changes to its board, with the recent retirement of Jeff Dykan as Chairman and the appointment of Joseph Turk as his successor.

Moreover, Lifeward has affirmed its revenue guidance for 2024, forecasting a range between $28 million and $32 million. Analysts from H.C. Wainwright estimate Lifeward's total revenues for the year to reach approximately $30.8 million.

Lastly, Lifeward has strengthened its board's governance capabilities with the appointment of Robert J. Marshall Jr., a financial executive with over thirty years of experience, as a new director and Chairman of the Audit Committee. These are recent developments that reflect Lifeward's ongoing business activities and financial performance.

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