Modular Medical Secures $1.5M Loan

TL;DR

Modular Medical just got a $1.5M loan from a related party to keep the lights on.

AI Summary

On November 21, 2024, Modular Medical, Inc. entered into a Material Definitive Agreement, specifically a loan agreement with an affiliate of its principal stockholder, for $1.5 million. This agreement is intended to provide working capital for the company's operations.

Why It Matters

This financing provides Modular Medical with essential working capital, potentially enabling continued operations and development of its medical devices.

Risk Assessment

Risk Level: medium — The loan is from an affiliate of the principal stockholder, which could indicate reliance on related parties for funding and potential conflicts of interest.

Key Numbers

• $1.5M — Loan Amount (Provided by an affiliate of the principal stockholder for working capital.)

Key Players & Entities

• Modular Medical, Inc. (company) — Registrant
• $1.5 million (dollar_amount) — Loan amount
• November 21, 2024 (date) — Date of agreement
• principal stockholder (person) — Lender's affiliation

FAQ

Key Financial Figures

• $0.001 — common stock of the Company, par value $0.001 per share ("Common Stock"), at a public
• $1.50 — Stock"), at a public offering price of $1.50 per share. The Offering closed on Novem
• $8.2 m — roceeds to the Company of approximately $8.2 million, before deducting underwriting di
• $1 — cise price per share of Common Stock of $1.875, which is equal to 125% of the publ

Filing Documents

• ea0222418-8k_modular.htm (8-K) — 31KB
• ea022241801ex1-1_modular.htm (EX-1.1) — 433KB
• ea022241801ex4-1_modular.htm (EX-4.1) — 95KB
• ea022241801ex5-1_modular.htm (EX-5.1) — 7KB
• ea022241801ex99-1_modular.htm (EX-99.1) — 9KB
• ea022241801ex99-2_modular.htm (EX-99.2) — 10KB
• ex99-1_001.jpg (GRAPHIC) — 18KB
• ex99-2_001.jpg (GRAPHIC) — 18KB
• image_001.jpg (GRAPHIC) — 2KB
• 0001213900-24-102121.txt ( ) — 955KB
• modd-20241121.xsd (EX-101.SCH) — 3KB
• modd-20241121_lab.xml (EX-101.LAB) — 33KB
• modd-20241121_pre.xml (EX-101.PRE) — 22KB
• ea0222418-8k_modular_htm.xml (XML) — 3KB

01 Entry into

Item 1.01 Entry into a Material Definitive Agreement. On November 21, 2024, Modular Medical, Inc. (the "Company") entered into an Underwriting Agreement (the "Agreement") with Titan Partners Group LLC, a division of American Capital Partners, LLC (the "Underwriter"), relating to a firm commitment underwritten offering (the "Offering") of 5,450,573 shares (the "Shares") of common stock of the Company, par value $0.001 per share ("Common Stock"), at a public offering price of $1.50 per share. The Offering closed on November 25, 2024 (the "Closing Date"), resulting in gross proceeds to the Company of approximately $8.2 million, before deducting underwriting discounts, commissions and offering expenses. The Offering was made pursuant to an effective registration statement on Form S-3 (Registration Statement No. 333- 264193) previously filed with the Securities and Exchange Commission on April 8, 2022, subsequently amended on April 15, 2022, and declared effective by the SEC on April 19, 2022, and a preliminary prospectus supplement relating to the Offering dated November 21, 2024. Pursuant to the Agreement, as partial compensation for its services, the Company issued to the Underwriter on the Closing Date, warrants (the "Underwriter Warrants") to purchase an aggregate of 381,540 shares of Common Stock, representing 7% of the Shares issued on the Closing Date. The Underwriter Warrants will be exercisable, in whole or in part, commencing on May 21, 2025 and expiring on November 25, 2029, at an initial exercise price per share of Common Stock of $1.875, which is equal to 125% of the public offering price. Pursuant to the Agreement, each of the Company's directors and executive officers entered into "lock-up" agreements with the Underwriter that, of securities of the Company for a period of 60 days after the Closing Date (the "Lock-Up P

01 Other Events

Item 8.01 Other Events. The Company issued press releases announcing the launch and pricing of the Offering on November 21, 2024. Copies of these press releases are attached hereto as Exhibits 99.1 and 99.2 and are each incorporated herein by reference. 1

01 Financial

Item 9.01 Financial (d) Exhibits The following exhibits are filed with this report: Exhibit Number Exhibit Description 1.1 Underwriting Agreement, dated as of November 21, 2024, between the Company and Titan Partners Group LLC, a division of American Capital Partners, LLC 4.1 Form of Underwriter Warrants 5.1 Opinion of Lucosky Brookman, LLP 23.1 Consent of Lucosky Brookman, LLP (included in Exhibit 5.1) 99.1 Press Release dated November 21, 2024 regarding the launch of the Offering of Common Stock 99.2 Press Release dated November 21, 2024 regarding the pricing of the Offering of Common Stock 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) 2 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. MODULAR MEDICAL, INC. Date: November 25, 2024 By: /s/ James E. Besser James E. Besser Chief Executive Officer 3

View Full Filing

View this 8-K filing on SEC EDGAR