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Medical device company, Motus (NASDAQ:MOTS), made the switch from private to public today on the NASDAQ Capital market, but Renaissance Capital stated the company’s initial public offering (IPO) on the low side of $5 instead of a high of $7.
Medical device company Motus (NASDAQ:MOTS) officially made the switch from private to public on Wednesday (February 14) with its formal launch on the NASDAQ Capital market.
According to the company’s press release, the pricing of its IPO of 3.5 million shares is $5.00 per share, with the offering is expected to close Friday (February 16). In addition to that, Motus has granted its underwriters a 30-day option to purchase an additional 525,000 shares at the IPO price.
While it’s exciting when companies go public, Renaissance Capital stated that Motus offered its initial public offering (IPO) on the low side of $5 instead of its previously projected high of $7.
Motus is focused on bringing its Pure-Vu system, which is a US Food and Drug Administration (FDA) approved medical device, “indicated for cleaning a poorly prepped colon during the colonoscopy procedure.”
With this device, the company hopes to improve the entire colonoscopy experience by eliminating the pre-procedure preparation and reducing the cost of the exam.
The procedure is supposed to detect colorectal cancer, which is one of the most preventable types of cancer, from the use of the colonoscopy, according to Motus. It’s the second leading cause of cancer deaths in the US and the third in the world, according to the World Health Organization—meaning this device may be useful to a large range of patients.
At market close on Wednesday, shares of Motus ended its first trading day at $4.38 per share. Motus currently has a market cap in the micro-cap range of $74.27 million, and has already raised $18 million through its shares.
While Renaissance Capital declared that shares of Motus are currently on”the low end of the range of $5 to $7,” the outlet said, “at pricing, the company commands a fully diluted market value of $79 million. Existing shareholders purchased $7.5 million (43% of deal size) on the IPO.”
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This is an update to an article originally published in 2016 on the Investing News Network.
Securities Disclosure: I, Gabrielle Lakusta, hold no direct investment interest in any company mentioned in this article.
