Wearable Devices Ltd. has successfully secured $4 million in funding through a registered direct offering, positioning the AI-powered wearable technology company for accelerated growth in the rapidly expanding extended reality landscape. The company entered into a securities purchase agreement with a single institutional investor for the sale of 1,000,000 ordinary shares at $4.00 per share, priced at-the-market under Nasdaq rules. This transaction, expected to close on or about September 12, 2025, will provide the company with expected gross proceeds of $4 million before expenses.
In a concurrent private placement, the company will issue unregistered warrants to purchase up to 1,000,000 additional ordinary shares at the same $4.00 per share price. These warrants are exercisable immediately and will expire five years from issuance, providing potential additional capital infusion for the company's technology development initiatives. This capital raise comes at a critical time for Wearable Devices Ltd., which specializes in developing AI-based neural input interface technology for both consumer and business markets.
The company's flagship product, the Mudra Band for Apple Watch, represents a significant advancement in touchless interaction technology. The wristband integrates innovative AI-based technology and proprietary algorithms with specialized sensors that can identify subtle finger and wrist movements, enabling users to interact with connected devices without physical contact. According to the company's announcement available at https://ibn.fm/NkbjS, Wearable Devices is committed to creating disruptive, industry-leading technology that leverages AI and proprietary algorithms to set new input standards for this emerging technology landscape.
The funding is particularly important given the company's focus on the extended reality market, which represents one of the fastest-growing segments in the technology industry. Beyond its consumer product, the company also markets a business-to-business solution that utilizes the same core technology as the Mudra Band, offering licensing opportunities for enterprises seeking to incorporate touchless interaction capabilities into their operations. This dual-market approach positions the company to capture value across both consumer and enterprise segments as touchless interface technology gains broader adoption.
The successful completion of this $4 million offering demonstrates institutional investor confidence in Wearable Devices' technology roadmap and market positioning. The additional capital will enable the company to accelerate research and development efforts, expand its product offerings, and strengthen its position in the competitive wearable technology market. As extended reality technologies continue to evolve and gain mainstream acceptance, advanced input solutions like those developed by Wearable Devices are becoming increasingly critical for seamless user experiences.
