Envoy Medical closes $16 million registered direct offering

Envoy Medical Inc. (NASDAQ: COCH) announced the closing of a registered direct offering that raised $4 million upfront with potential additional proceeds of up to $12 million through warrant exercises.

The hearing health company sold 3,007,524 shares of Class A common stock at $1.33 per share. In a concurrent private placement, Envoy Medical issued warrants to purchase up to 9,022,572 shares at an exercise price of $1.33 per share. The warrants are exercisable immediately and expire 24 months following the effective date of the registration statement covering the underlying shares.

H.C. Wainwright & Co. served as the exclusive placement agent for the offering. The gross proceeds totaled approximately $4 million before deducting placement agent fees and other offering expenses.

The company stated it may receive up to $12 million in additional proceeds if all warrants are exercised for cash, though it noted no assurance can be given that the warrants will be exercised. The warrants may expire without being exercised.

Envoy Medical plans to use the net proceeds for working capital and general corporate purposes. The company develops fully implanted hearing solutions, including its Esteem active middle ear implant available commercially in the U.S. since 2010 and the investigational Acclaim cochlear implant.

The shares were offered under a shelf registration statement filed with the Securities and Exchange Commission and declared effective on October 21, 2024. The warrants and underlying shares were offered in a private placement under securities law exemptions and have not been registered.

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