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HANGZHOU, China - WORK Medical Technology Group LTD (NASDAQ:WOK), a Chinese medical device supplier, announced Thursday it has entered into an agreement with investors for the sale of approximately 39 million Class A ordinary shares at $0.075 per share in a registered direct offering. The company, which has seen its stock decline nearly 98% year-to-date and currently carries a debt-to-equity ratio of 1.01, is seeking to strengthen its financial position.
The offering, which includes an option for pre-funded warrants in lieu of shares, is expected to generate gross proceeds of approximately $2.9 million for the company. The transaction is anticipated to close on or about September 26, 2025, subject to customary closing conditions. According to InvestingPro analysis, WORK Medical has been rapidly burning through cash, with negative free cash flow of $13.2 million in the last twelve months.
Univest Securities, LLC is serving as the sole placement agent for the offering, which is being conducted pursuant to a shelf registration statement previously filed with and declared effective by the U.S. Securities and Exchange Commission.
WORK Medical, through its subsidiary Work (Hangzhou) Medical Treatment Equipment Co., Ltd., develops and manufactures Class I and II medical devices in China. The company’s product portfolio includes 21 products, primarily customized masks and other medical consumables that are sold across China and in more than 30 countries worldwide. Despite maintaining a gross profit margin of 27%, InvestingPro data shows the company’s overall financial health score remains weak, with 15 additional key insights available to subscribers.
The company has registered 17 products with the U.S. Food and Drug Administration, allowing entry into the American market.
The announcement was made in a press release statement issued by the company.
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