The California-based exoskeleton manufacturer, Ekso Bionics, entered a 1-for-7 reverse stock split on Wed, May 4th, 2016. This comes only 6 days before its scheduled 1st Quarter of 2016 financial report. Many in the financial community have already predicted this would happen. Ekso stock has traded at or below the important $1.00 per share level since January of 2015. In January, the $1.00 stock floor for Ekso reversed and became a $1.00 ceiling that no rally has been able to punch through.
The second reason for the reverse stock split is the potential for Ekso Bionics to be listed on the NASDAQ stock market. Ekso Bionics certainly has the products and technology to earn a spot on the NASDAQ Capital Market. Another requirement is that the company stock trade above $4.00 for 30 trading days in a row (the stock closed $6.28 on Friday, which is considerably above the minimum).
The Ekso stock will trade with the temporary stock ticker “EKSOD” for 20 trading days. Afterwards, it will return back to being “EKSO”. Following the reverse split, the stock is also assigned a new CUSIP number, 282644202.
Several investors have voiced concern over the timing of this announcement, coming just a week before the first quarter financial report. Reading through the investment websites, forum members are clamoring for new orders, especially for the Ekso Works. It is doubtful however, that there will be a large spike in orders as exoskeletons for work and industry are still playing catch-up to medical exoskeletons. There needs to be a lot more testing and evaluation of the benefits of wearable devices for industry before they become more widely accepted. There is a great article by NIOSH Science Blog from March 2016 that emphasizes the path ahead for Wearable Exoskeletons to Reduce Physical Load at Work. With the recent FDA approval for the Ekso GT, there could be a spike in orders for the rehabilitation device, but the announcement was made just last month in April and it is unlikely enough time has passed for many new orders to accumulate.
Ekso Bionics has had a very exciting few months! In December of 2015 it acquired Equipois and their spring arm zeroG technology. In February, Thomas Looby became interim and later permanent CEO. In April the Ekso GT received FDA approval for clinical use not only for spinal cord injury patients but for stroke recovery as well. We don’t know what is next for the company, but it currently stands on a great foundation with research and patents in the medical, work/industry and military exoskeleton fields, something that few exoskeleton developers can match. The roughly 200 Ekso GT suits in operation also represent the second largest user base for rehabilitation devices, emphasizing the strength of the footholds Ekso Bionics has in that market.
For more information, please visit:
The Ekso Bionics official website: http://eksobionics.com