Wearable Devices Ltd. has entered into a securities purchase agreement with a single institutional investor for a $4 million registered direct offering, marking a significant financial milestone for the company specializing in AI-powered touchless sensing wearables. The company will issue 670,000 ordinary shares at $6.00 per share, priced at-the-market under Nasdaq rules, with gross proceeds expected to be approximately $4 million before deducting placement agent commissions and expenses. This capital infusion comes at a critical time as the company expands its neural input interface technology across consumer and business markets.
In a concurrent private placement, the company will issue unregistered warrants to purchase up to 670,000 additional ordinary shares at the same $6.00 per share price. These warrants are exercisable immediately and will expire five years from issuance, providing the institutional investor with additional flexibility while potentially offering the company access to future capital through warrant exercises. The closing of the offering is expected on or about September 15, 2025, subject to customary closing conditions, with the transaction structure reflecting current market conditions and investor appetite for innovative technology companies.
The funding announcement signals growing institutional confidence in touchless interface technology, particularly as the Extended Reality market continues its rapid expansion. Wearable Devices' flagship product, the Mudra Band for Apple Watch, represents a significant advancement in neural input interface technology that utilizes proprietary sensors and AI algorithms to detect subtle finger and wrist movements. This technology enables users to interact with connected devices without physical contact, addressing the increasing demand for intuitive, hands-free interaction with digital devices across multiple industries.
The company's dual-market approach positions it to capitalize on both consumer wearables and business applications, with the latter available to businesses on a licensing basis. The successful completion of this offering could accelerate the company's research and development efforts, potentially leading to new product innovations and expanded market presence in the competitive wearable technology sector. For additional information about the company and its technology developments, investors can access the latest news and updates at https://ibn.fm/WLDS.
