Microbot Medical raises funds and anticipates FDA clearance

HINGHAM, MA – Microbot Medical Inc. (NASDAQ:MBOT), a clinical-stage medical device company with a market capitalization of $43.2 million, announced significant developments, including fundraising efforts and a submission to the FDA for its LIBERTY® Endovascular Robotic System. The company’s stock has shown remarkable momentum, delivering a 166% return over the past six months according to InvestingPro data.

The company disclosed that on January 6, 2025, it entered into a securities purchase agreement to issue 4 million shares of common stock in a registered direct offering. Concurrently, series G preferred investment options were issued to investors. The offerings closed on January 7, 2025, raising approximately $7.0 million before fees and expenses.

A similar agreement on January 7, 2025, resulted in the sale of approximately 3.8 million shares and the issuance of series H preferred investment options. These offerings closed on January 10, 2025, yielding approximately $8.6 million in aggregate gross proceeds before fees and expenses.

Additionally, the company updated on an At-the-Market (ATM) offering agreement from June 10, 2021, with H.C. Wainwright & Co., which concluded on January 7, 2025, after raising nearly $4.8 million before fees and expenses.

On the product development front, Microbot submitted a 510(k) premarket notification to the FDA for the LIBERTY® Endovascular Robotic System on December 10, 2024, following a successful clinical trial. The company anticipates FDA clearance in the second quarter of 2025 and plans to commence U.S. commercialization thereafter.

The company also reported on the impact of the Israel-Hamas war, which began on October 7, 2023. Despite the conflict and a ceasefire with Hamas on January 15, 2025, Microbot has not experienced any material adverse effects on its business or operations. However, the Israeli military operations continue to pose potential risks.

Financially, Microbot Medical has not generated revenue from operations and has incurred losses and negative cash flows since inception. As of September 30, 2024, the company had a net working capital of approximately $3.6 million, with a current ratio of 3.64x indicating strong short-term liquidity. Subsequent fundraising has added approximately $20.6 million to its resources.

InvestingPro analysis reveals the company maintains a "GOOD" overall financial health score despite rapid cash burn, with particularly strong momentum metrics. Subscribers can access 15+ additional ProTips and detailed financial metrics to better understand the company’s position.

Microbot Medical has received grants from the Israeli Innovation Authority and has raised approximately $93.4 million in cash proceeds since its inception in November 2010. The company continues to seek additional capital through public and private issuances of debt and equity securities.

As for competition, the LIBERTY® Endovascular Robotic Surgical System faces rivals like Corindus Vascular Robotics’ CorPath GRX system and other companies in various development stages. Analysts maintain a bullish outlook on Microbot’s competitive position, with a consensus price target of $9.00 per share, suggesting significant upside potential from current levels.

The company’s executive compensation included salaries, bonuses, and stock option awards for key personnel. Details of employment agreements for executives were provided, including termination provisions and non-competition clauses.

Finally, the company presented information on equity compensation plans, outstanding options, warrants, and preferred investment options, as well as beneficial ownership by certain individuals and groups as of January 31, 2025.

This report is based on a press release statement.

In other recent news, Microbot Medical has seen a series of developments. The company’s Chief Technology Officer, Simon Sharon, and Chief Financial Officer, Rachel Vaknin, received salary increases, while Chief Medical (TASE:PMCN) Officer Juan Diaz-Cartelle’s potential annual bonus was increased. These changes in executive compensation were outlined in a recent SEC filing.

Microbot Medical also regained compliance with Nasdaq’s minimum bid price requirement, addressing a previous deficiency. The company’s CEO, Harel Gadot, was awarded a special bonus of $150,000 as disclosed in an SEC filing. No specific criteria or performance metrics for this bonus were disclosed.

In a recent note, H.C. Wainwright raised its price target for Microbot Medical to $9.00, up from the previous $7.00, while maintaining a Buy rating on the company’s shares. This update came in light of the company’s submission of a 510(k) premarket notification to the FDA for LIBERTY, a single-use, fully-disposable robotic system for endovascular procedures.

Microbot Medical also announced the completion of its at-the-market (ATM) equity offering program, selling a total of 4,276,486 shares and raising gross proceeds of approximately $4.82 million. The company’s issued and outstanding common stock now totals 20,242,119 shares. The company also updated on its intellectual property portfolio, which includes 16 issued or allowed patents and 59 pending patent applications worldwide.

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