TLDR
- Wearable Devices (WLDS) stock surged 47% after announcing a $4 million registered direct offering with a single institutional investor
- The company is selling 1 million ordinary shares at $4 per share to raise funds for working capital and general corporate purposes
- The offering includes concurrent private placement warrants with $4 exercise price, exercisable immediately and expiring in five years
- Retail sentiment remains extremely high with message volumes jumping 1,300% on Stocktwits in 24 hours
- The stock had previously jumped 408% on Wednesday after receiving a patent for gesture and voice-controlled interface technology
Wearable Devices stock climbed 47% in early trading Thursday morning. The jump came after the company announced pricing details for a registered direct offering.
The Israeli technology company entered into a securities purchase agreement with a single institutional investor. Under the deal, Wearable Devices will sell 1 million ordinary shares at $4 per share.
The direct offering will raise approximately $4 million in gross proceeds before fees. The company expects the transaction to close on or around September 12, 2025.
Retail investors showed strong interest in the stock following the announcement. Message volumes on Stocktwits jumped nearly 1,300% in the past 24 hours.
Sentiment among retail traders remained in extremely high territory according to Stocktwits data. The stock ranked among the top eight trending stocks on the platform.
Warrant Details and Structure
The offering includes additional components beyond the share sale. Wearable Devices will issue unregistered warrants in a concurrent private placement.
These warrants allow the purchase of up to 1 million ordinary shares. The exercise price is set at $4 per share, matching the direct offering price.
The warrants become exercisable immediately upon issuance. They will expire five years from the initial exercise date.
The warrant portion relies on exemptions from registration under Section 4(a)(2) of the Securities Act. This private placement structure allows the company to avoid full registration requirements.
Recent Patent Success
The stock had already gained momentum earlier in the week. On Wednesday, shares closed up nearly 408% after patent news.
The United States Patent and Trademark Office granted Wearable Devices a new patent. The patent covers “Gesture and Voice-Controlled Interface Device” technology.
This patent encompasses the integration of gesture recognition and voice control systems. The technology includes enhanced biometric authentication features.
The patent adds to the company’s intellectual property portfolio in touchless sensing technology. Wearable Devices specializes in AI-powered neural input systems.
The company operates through direct-to-consumer sales and enterprise licensing models. Its main consumer products include the Mudra Band and Mudra Link devices.
These products enable touch-free control of digital devices using hand gestures. The technology works across multiple operating systems and platforms.
Wearable Devices plans to use the offering proceeds for working capital needs. The funds will also support general corporate purposes as the company continues product development.
The ordinary shares are being offered under an existing registration statement filed with the SEC. This registration statement was declared effective in October 2023.
