Ekso Bionics, one of the first exoskeleton startups, has been uplisted to the NASDAQ Stock Market. This marks a giant step forward for Ekso Bionics and dozens of newer wearable robotics companies that are considering going public.
Ekso Bionics is based in Richmond, CA. It has been developing able-body and rehabilitation exoskeletons for over ten years. The company is transitioning from a research to a commercial entity with ever growing sales. Now that Ekso Bionics is traded on NASDAQ it is on the same financial playing field as some of its main rivals, ReWalk Robotics and Parker Hannifin.
It almost didn’t happen!
One requirement for Ekso Bionics to be uplisted to NASDAQ was that its stock would not trade under $4.00. After the seven-to-one reverse split, the situation appeared that Ekso Bionics would have no problem staying above the minimum level. In a particularly hair-raising week in July the company stock briefly traded in the low 4s. In one single moment, Ekso Bionics traded as low as $4.01 and it seemed that the uplisting might not happen at all!
The entire process for Ekso Bionics to be listed on NASDAQ took three months, from May 4th, 2016 to August 8th, 2016. The company will still be traded under EKSO.
New Offering of Common Stock
With the good uplisting news appeared some bad news too. Ekso Bionics announced a new stock offering of $15 million dollars. This new round of fundraising was hardly a surprise to anyone that follows Ekso Bionics. The company acquired the makers of the zeroG spring arm, Equipoise back in December of 2015. Together with the cost of the acquisition and its day to day operations, it was only a matter of time when the company would need to raise new cash. What came as a surprise was that Ekso Bionics offered 3,750,000 shares of its common stock at a price of $4.00 per share.
The $4.00 offering is significantly lower than the $6.22 previous close. Taking into consideration the reverse split, the offering price is still higher than the lowest price Ekso Bionics has ever traded at, but it is close. Reading through some of the financial forums it is clear that a few older investors were left with mixed feelings. However, any negative feelings towards Ekso Bionics are overshadowed by a general consensus that the company is moving in the right direction.
InvestorHub, Ekso Bionics, Forum
Yahoo Finance, Quote: EKSO