SoFi CEO enters prepaid forward contract on 1.5 million shares
TYLER, Texas - Medical technology company NanoVibronix, Inc. (NASDAQ:NAOV), currently valued at $2.61 million in market capitalization, announced Friday it has entered into a definitive agreement with an institutional investor for $8 million in gross proceeds through the sale of convertible preferred stock. According to InvestingPro analysis, the company’s current financial health score stands at "FAIR," with the stock trading below its Fair Value.
The agreement involves the purchase of 8,889 shares of Series H Convertible Preferred Stock with a stated value of $8,888,889, convertible into common stock at an initial price of $1.01 per share. The initial closing is expected to occur around July 21, 2025.
The deal also includes a second closing for approximately $2 million in additional funding, along with potential future investment rights of up to $44 million over a 36-month period.
NanoVibronix plans to use $5 million of the proceeds to redeem outstanding Series X Preferred Stock, with the remainder allocated for working capital. This funding comes at a crucial time, as InvestingPro data shows the company’s current ratio at 0.47, indicating short-term obligations exceed liquid assets. With a gross profit margin of 45.57%, the company faces challenges in cash management.
"This capital empowers us to expand our footprint in high-impact, large addressable markets," said Doron Besser, Chief Executive Officer of NanoVibronix, according to the press release.
The company specializes in therapeutic devices for enteral feeding, pain management, and urological conditions. Its product portfolio includes acoustic-based technologies like PainShield and UroShield, which utilize low-intensity surface acoustic wave technology, as well as the ENvue Navigation Platform for placing feeding tubes.
Palladium Capital Group is serving as the exclusive placement agent for the transaction.
The securities offered in this private placement are being issued under an exemption from registration requirements and are not registered under the Securities Act of 1933. The company has agreed to file a resale registration statement covering these securities. Get deeper insights into NanoVibronix’s financial health and access 13 additional ProTips with InvestingPro, including detailed analysis of cash flow and debt metrics.
In other recent news, NanoVibronix, Inc. announced a significant development with the granting of a U.S. patent for its pediatric feeding tube guidance system, which represents a substantial market opportunity in the medical device sector. Additionally, the company has been active in correcting a typographical error in its Series G Preferred Stock designation, adjusting the floor price to $1.91 from the previously stated $1.02. These corrections were filed with the Delaware Secretary of State and are based on an SEC filing. In a strategic move, NanoVibronix appointed Doron Besser as the new CEO following the acquisition of ENvue Medical Holdings, a transition expected to enhance operational synergies. The company also addressed false claims about a $26 million stock offering, confirming that no such offering is being executed and emphasizing its commitment to accurate information dissemination. Furthermore, NanoVibronix has rescheduled its Special Meeting of Stockholders due to a lack of quorum, with voting to be reconvened virtually on July 17, 2025. These recent developments reflect the company’s ongoing efforts to expand its product portfolio and maintain transparency with investors.
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