Modular Medical, which is developing a wearable insulin pump device, lowered the proposed deal size for its upcoming IPO on Monday.
The San Diego, CA-based company now plans to raise $15 million by offering 1.6 million units at $9.25, the February 3 last reported sale price of its shares on the OTCQB (MODD). The company had previously filed to offer 2.4 million shares at $12.49. Each unit consists of one share of common stock and one warrant. The company did not disclose the warrant exercise price. At the revised terms, Modular Medical will raise -50% less in proceeds than previously anticipated.
Because the company is now offering warrants, Modular Medical is no longer eligible for tracking and will be excluded from Renaissance Capital's stats.
Modular Medical is a development stage medical device company focused on the design, development, and commercialization of a novel two-part patch insulin pump called MODD1. The company seeks to expand the wearable insulin delivery device market and expand the category into the mass market, serving both the type 1 and type 2 diabetes markets. The pre-production models of its insulin pump are undergoing testing required to submit to the FDA for clearance to market in the US. Modular expects to submit its product to the FDA in March 2022 through a premarket notification process.
Modular Medical was founded in 1998 and plans to list on the Nasdaq under the symbol MODD. Oppenheimer & Co. is the sole bookrunner on the deal.
