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Movano (MOVE) Announces $24M Private Placement at $0.533/unit

April 2, 2024 5:02 PM EDT

Movano Health (Nasdaq: MOVE), a pioneer in health technology, today has agreed to sell approximately 45 million units in a $24 million private placement, with each unit consisting of one share of the Company's common stock (or pre-funded warrant in lieu thereof) and one warrant to purchase a share of common stock, to a select group of investors that includes a tier-one multi-billion dollar medical device company, institutional and accredited investors, and members of the Company's management team and board of directors. Movano Health intends to use the net proceeds from the financing for working capital and general corporate purposes. The proceeds from this financing, combined with current cash, cash equivalents and marketable securities, are expected to be sufficient to fund the current operating plan well into 2025.

"Today marks a pivotal moment in our company's journey – securing a strategic investment from one of the world's leading medical device companies as part of a significant capital infusion. This event not only underscores the vast potential of Movano Health's innovative approach to delivering medical-grade data to both consumers and enterprises but also acts as an endorsement of the company's vision and technological advancements," said John Mastrototaro, CEO of Movano Health.

The $24 million private placement includes a $3.0 million seed investment from the tier 1 medical device company and more than $3.6 million from members of Movano Health's management team and board of directors.

"We are thrilled to have the support of such a prestigious strategic investor, alongside the substantial investment from Movano Health's management team and board of directors and broad-based backing of institutional and accredited investors," said Mastrototaro. "With this capital raise, we have the financial resources to accelerate the development of our proprietary technologies and wearable medical device solutions for the significant enterprise opportunity that exists in healthcare."

Terms

Each unit includes one common share sold at a price of $0.4071, and one warrant priced at $0.125 to purchase one common share, for a unit price of $0.533. The warrants will have an exercise price of $0.4071 per share of common stock, will be immediately exercisable, and have a five year term. The pre-funded warrants will have an exercise price of $0.001 per share of common stock, will be immediately exercisable, and will remain exercisable until exercised in full. The financing is expected to close on April 4, 2024, subject to customary closing conditions. Movano Health anticipates the gross proceeds from the private placement to be approximately $24 million, before deducting any offering-related expenses.

The Benchmark Company, LLC acted as placement agent for the offering. The Liquid Venture Partners group at The Benchmark Company, LLC was responsible for sourcing and executing the offering.

K&L Gates LLP represented the Company and Greenberg Traurig, LLP represented the placement agent in the transaction.

The securities described above have not been registered under the Securities Act of 1933, as amended. Accordingly, these securities may not be offered or sold in the United States, except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act. Movano Health has agreed to file a registration statement with the U.S. Securities and Exchange Commission (the "SEC") registering the resale of the shares of common stock and the shares of common stock issuable upon exercise of the pre-funded warrants issued in this private placement. Any offering of the securities under the resale registration statement will only be made by means of a prospectus.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

Fourth Quarter, 2024 Results and Conference Call on April 4, 2024
In a separate press release today, Movano Health announced it will release its fourth quarter 2023 results on April 4, 2024, after the market close. Management will be hosting a conference call to discuss the results and provide a business update on the same day at 2:00 PM PT/5:00 PM ET.

Attendees can access the live webcast here or on the investors section of Movano Health's website at https://ir.movano.com. The conference call can be accessed by dialing 1-877-407-0989 (domestic), or 1 201-389-0921 (international). Attendees can also use the Call Me Link, in which they will be dialed in to the conference call instantly on the number provided with no hold time. An archived webcast will be available on Movano Health's website approximately one hour after the completion of the event and for two years thereafter.



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