DIH Holding US, Inc. completes public offering

DIH Holding US , Inc. (NASDAQ:DHAI), a medical device company with annual revenue of $73.5 million, announced the completion of a public offering on February 3, 2025. According to InvestingPro analysis, the company’s stock is currently trading below its Fair Value, despite showing strong revenue growth of nearly 17% over the last twelve months.

The offering consisted of 5,937,100 common units at $0.7832 each, with each unit comprising one share of Class A common stock and one Class A warrant. The warrants, exercisable immediately at the same price per share, will expire on February 3, 2030.

The company entered into a Securities Purchase Agreement with certain institutional investors and a Placement Agreement with Maxim Group LLC, which acted as the exclusive placement agent. DIH Holding agreed to pay the placement agent a fee of 7.0% of the gross proceeds, or 3.5% for investors introduced by the company, along with $125,000 for expenses and legal fees.

The proceeds from the offering, netting approximately $3.9 million after fees and expenses, are intended for capital expenditures related to the company’s business, working capital, and general corporate purposes. T

his capital raise comes at a crucial time, as InvestingPro data shows the company’s current ratio at 0.6, indicating potential short-term liquidity challenges.

DIH Holding also agreed to a 90-day lock-up period for the company and a six-month lock-up for directors, executive officers, and major shareholders, with the possibility of extensions under certain conditions. Additionally, the company has committed not to engage in any Variable Rate Transactions for six months following the offering.

The offering was conducted under a previously filed Registration Statement on Form S-1, which was declared effective by the SEC on January 31, 2025. The Class A Warrants will be managed by Continental Stock Transfer & Trust Company as per the Warrant Agency Agreement.

This news is based on the company’s recent SEC filing and contains forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially. For deeper insights into DHAI’s financial health and growth prospects, InvestingPro subscribers have access to over 10 additional key insights and detailed financial metrics that could help inform investment decisions.

In other recent news, DIH Holding US, Inc. has been actively advancing its business operations. Notably, the company has expanded its strategic partnership with Zahrawi Group to include Saudi Arabia, a move that builds on a successful collaboration that began in 2019. This partnership aims to enhance the distribution and accessibility of DIH’s innovative rehabilitation solutions across the United Arab Emirates, Qatar, Bahrain, and now Saudi Arabia.

In addition to the partnership expansion, DIH has announced the pricing of its public offering at $0.7832 per unit, with the closing expected around February 3, 2025. This offering comprises nearly 6 million units and aims to raise approximately $4.6 million before fees and expenses. Maxim Group LLC is the sole placement agent for the transaction.

Furthermore, DIH has updated its investor presentation, providing current and potential investors with fresh insights into the company’s operations, strategic direction, and financial health. The updated presentation is now available on the company’s website and was disclosed in compliance with Regulation FD.

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