FORT LAUDERDALE, Fla., Aug. 28, 2020 (GLOBE NEWSWIRE) -- Motus GI Holdings, Inc., (NASDAQ:MOTS) ("Motus GI" or the "Company"), a medical technology company providing endoscopy solutions that improve clinical outcomes and enhance the cost-efficiency associated with the diagnosis and management of gastrointestinal conditions, announced today that it has entered into a securities purchase agreement with a single healthcare focused institutional investor providing for the sale and issuance of 8,733,625 shares of common stock (or pre-funded warrants to purchase common stock in lieu thereof) at an effective purchase price of $1.145 per share of common stock (or $1.144 per pre-funded warrant) in a registered direct offering priced at-the-market under Nasdaq rules. The offering is expected to result in gross proceeds to Motus GI of approximately $10 million. The closing of the offering is subject to customary closing conditions and is expected to close on or about September 1, 2020.
Motus GI will also issue to the purchaser unregistered warrants to purchase up to an aggregate of 8,733,625 shares of common stock. The warrants will be exercisable for a period of five years and have an exercise price of $1.30 per share of common stock.
Motus GI intends to use the net proceeds received from this offering to fund commercialization activities for the Pure-Vu System, to continue research and development activities, including clinical and regulatory development and for the continued development and enhancement of the Pure-Vu® System and potential debt repayment. Motus GI intends to use the remaining net proceeds for working capital and other general corporate purposes.