Street Calls of the Week
SAN DIEGO - Modular Medical, Inc. (NASDAQ:MODD), a medical device company with a current market capitalization of approximately $39 million, announced Monday the exercise of certain existing warrants at a reduced price of $0.68 per share, generating approximately $4.4 million in gross proceeds for the company. According to InvestingPro data, this financing comes as the company’s stock has declined nearly 70% over the past year.
The transaction involved 6,504,731 existing warrants originally issued in May 2023 and March 2025. In exchange for the immediate cash exercise, the company will issue new unregistered warrants to purchase up to 3,252,366 shares of common stock at $0.84 per share, exercisable upon issuance with a five-year term.
Modular Medical stated it plans to use the net proceeds for working capital and general corporate purposes. While InvestingPro analysis shows the company maintains more cash than debt on its balance sheet, it has been rapidly burning through cash reserves. The new warrants were offered in a private placement under an exemption from registration requirements and have not been registered under the Securities Act of 1933.
The company has agreed to file a registration statement with the Securities and Exchange Commission covering the resale of shares issuable upon exercise of the new warrants. Newbridge Securities Corporation served as the servicing agent for the warrant inducement program.
Modular Medical is developing an insulin delivery system called the Pivot pump, which targets what the company describes as "almost-pumpers" in the diabetes technology market. The company is currently pursuing FDA clearance for its product.
"We are grateful for our investors’ support, which strengthens our path, as we pursue FDA clearance and commercialization of our Pivot product," said Jeb Besser, CEO of Modular Medical, according to the press release.
The company was founded by Paul DiPerna, who previously founded Tandem Diabetes and designed its t:slim insulin pump.
In other recent news, Modular Medical, Inc. has made notable advancements in its insulin pump technology. The company announced the completion of a clinical study involving its MODD1 insulin pump, which included feedback from nine Type 1 diabetes clinicians. This study aimed to gather real-world experience to refine the upcoming Pivot pump product, focusing on ease of use and transitioning patients from multiple daily injections to pump therapy. Additionally, Modular Medical received Institutional Review Board approval to conduct an in-house feasibility study for its next-generation Pivot insulin delivery system. This study will use sterile saline to simulate real-world conditions and will last up to 90 days, collecting data on usability and performance. The insights gained from this study will aid in refining the Pivot pump before its planned FDA submission in October 2025. These developments highlight Modular Medical’s ongoing efforts to enhance its insulin pump offerings.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.