Microbot (MBOT) Extends 4-Day Decline on $63-Million Fundraising Program

We recently published 10 Stocks Losing Big Amid Market Boom. Microbot Medical Inc. (NASDAQ:MBOT) is one of the worst performers on Thursday.

Microbot extended its losing streak to a fourth consecutive session on Thursday, shedding 6.93 percent to close at $3.09 apiece as investor sentiment was dampened by a potential dilution from a fundraising program that could deliver the company worth $63 million.

In a statement earlier this week, Microbot Medical Inc. (NASDAQ:MBOT) said it was able to raise $25.2 million from an options exercise, covering 12.06 million shares at a price ranging from $1.5 to $2.13 apiece.

A second offering is set to close on October 15, with more than 1.9 million shares expected to be exercised at a price of $2.10 apiece, for around $4 million in fundraising potential.

In consideration of the exercise, the company will issue to the said shareholders new short-term series J preferred investment options with an exercise price of $4.5 apiece, exercisable beginning six months after issuance.

Share prices fell on Thursday as investors reacted negatively to the fundraising program, given the potential dilution of existing stocks.

According to Microbot Medical Inc. (NASDAQ:MBOT), net proceeds are intended to be used to continue with the development, commercialization, and regulatory activities for its LIBERTY Robotic System, alongside potential acquisitions of complementary assets or products, expansion and development of additional applications derived from its existing IP portfolio, and for working capital and other general corporate purposes.

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Disclosure: None. This article is originally published at Insider Monkey.