Wearable Devices Ltd. Secures $10M Equity Line
Ticker: WLDSW · Form: 6-K · Filed: Jun 7, 2024 · CIK: 1887673
| Field | Detail |
|---|---|
| Company | Wearable Devices Ltd. (WLDSW) |
| Form Type | 6-K |
| Filed Date | Jun 7, 2024 |
| Risk Level | medium |
| Pages | 4 |
| Reading Time | 5 min |
| Key Dollar Amounts | $10,000,000, $3.0 m, $2.0 million, $1.0 million, $2.0 m |
| Sentiment | neutral |
Sentiment: neutral
Topics: equity-financing, capital-raise, standby-agreement
TL;DR
Wearable Devices Ltd. just inked a $10M equity line with YA, giving them cash flexibility for 3 years.
AI Summary
On June 6, 2024, Wearable Devices Ltd. entered into a Standby Equity Purchase Agreement (SEPA) with YA II PN, Ltd. (YA). Under this agreement, Wearable Devices Ltd. can sell up to $10,000,000 worth of its ordinary shares to YA over a three-year period. The shares sold will be priced at 97% of the prevailing market price at the time of sale.
Why It Matters
This agreement provides Wearable Devices Ltd. with flexible access to capital, allowing them to raise funds as needed over the next three years to support operations or growth initiatives.
Risk Assessment
Risk Level: medium — Standby equity agreements can dilute existing shareholders and may indicate the company needs capital, potentially signaling financial pressure.
Key Numbers
- $10.0M — Commitment Amount (Maximum amount Wearable Devices Ltd. can raise through the SEPA.)
- 3-year period — Agreement Duration (The timeframe over which Wearable Devices Ltd. can utilize the SEPA.)
- 97% — Discount Price (The percentage of the market price at which shares will be sold to YA.)
Key Players & Entities
- Wearable Devices Ltd. (company) — Company entering into agreement
- YA II PN, Ltd. (company) — Investor in the agreement
- $10,000,000 (dollar_amount) — Maximum commitment amount under the SEPA
- June 6, 2024 (date) — Date the SEPA was entered into
FAQ
What is the purpose of the Standby Equity Purchase Agreement (SEPA)?
The SEPA allows Wearable Devices Ltd. to sell up to $10,000,000 of its ordinary shares to YA II PN, Ltd. over a three-year period, providing flexible access to capital.
Who is the counterparty to Wearable Devices Ltd. in this SEPA?
The counterparty is YA II PN, Ltd. (YA).
What is the maximum amount Wearable Devices Ltd. can raise under the SEPA?
The maximum amount is $10,000,000.
When was the SEPA executed?
The SEPA was executed on June 6, 2024.
At what price will Wearable Devices Ltd. sell its shares to YA?
The shares will be sold at 97% of the prevailing market price at the time of sale.
Filing Stats: 1,164 words · 5 min read · ~4 pages · Grade level 12 · Accepted 2024-06-07 16:05:19
Key Financial Figures
- $10,000,000 — the Company will be able to sell up to $10,000,000, or the Commitment Amount, of its ordin
- $3.0 m — nt Amount, in an aggregate amount up to $3.0 million, each a Pre-Paid Advance. The Com
- $2.0 million — equested an initial Pre-Paid Advance of $2.0 million upon the execution of the SEPA and may
- $1.0 million — an additional Pre-Paid Advance of up to $1.0 million at any time following the effectiveness
- $2.0 m — eceived the initial Pre-Paid Advance of $2.0 million, less a 4.0% original issue disco
- $10,000 — o YA a structuring fee in the amount of $10,000. Pursuant to the SEPA, the Company is
- $10 Million — itled “Wearable Devices Announces $10 Million Standby Equity Purchase Agreement,&rdqu
Filing Documents
- ea0207505-6k_wearable.htm (6-K) — 18KB
- ea020750501ex4-1_wearable.htm (EX-4.1) — 107KB
- ea020750501ex10-1_wearable.htm (EX-10.1) — 299KB
- ea020750501ex99-1_wearable.htm (EX-99.1) — 12KB
- 0001213900-24-050763.txt ( ) — 437KB
SIGNATURES
SIGNATURES 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, thereunto duly authorized. Wearable Devices Ltd. Date: June 7, 2024 By: /s/ Asher Dahan Asher Dahan Chief Executive Officer 3