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MAKE SURE YOU READ THE PROSPECTUS THAT HAS BEEN RELEASED TODAY...SEE THE NEWS ALERT ABOVE!
From Keith Fitz-gerald
Dear Total Wealth Investor,
Tiny Ekso Bionics Holdings Inc. (NasdaqCM:EKSO) -a part of our Unstoppable Technology Trend - recently released numbers and they were good.
The company continues to sell into stroke and rehabilitation centers in Europe and North America as planned.
Quarterly revenue was $1.9 million, which represents a 30% increase year-over-year driven largely by medical device sales of $1.5 million during that time frame.
Importantly, Ekso continues to prosper and the sales channel is growing, which, according to CEO Thomas Looby, may allow the sales window to shorten considerably from 18 months to 12 or less.
With 25 product demos in the U.S. and another 25 in Europe, that could finally spell the breakthrough needed to track higher.
[Urgent] HUGE lump-sum payouts thanks to a Great Depression era set of "programs"... Learn more.
Still, the company's got its own challenges. Like many disruptors, Ekso has to educate the market before it can put up the numbers needed to carry it to the valuations it rightly deserves.
That means a lot of time and money spent upfront to build knowledge. Revenue, for lack of a better term, gets backloaded as a function of maturity.
To that end, I was thrilled to see the company engage in another rights offering because cash is the one thing they need to make this happen. This time the offering was for a total of $34 million and at a price of $1 per share.
I hear from investors all the time who are bothered by the "dilution" or the fact that the markets haven't yet given the company a chance. It's a fair criticism.
Yet, to them I reply:
this is no different than Apple Inc. (NasdaqGS:AAPL), Monster Beverage Corp. (NasdaqGS:MNST) or dozens of other companies who've done the same thing at one point or another in their corporate lives
Disruptive companies often struggle before they take off because the markets have to absorb the technology they have on offer.
To reiterate, this is one of those companies where you need to get out of the kitchen if you can't stand the heat.
Ekso remains a speculative investment in the truest sense of the term so treat it accordingly.
Pay careful attention to CEO Tom Looby when he says that the company simply has to spend more time telling its story.
Because that's exactly what's needed - and what he's doing!
Best Regards for great investing,
Keith
In the conference call it was said that there would be a prospectus and press release with more details soon after the record date. I think they just have to make sure all legal docs are in order first.
I have a question for any of you out there that are more experienced investors than I am.
From the way I understand the Right offering, you had to hold your shares through the 10th to be eligible to buy the same number of shares as you owned. Say I owned 1000 shares and the price was 1.75/ at the open of the 11th. Can I sell all 1000 share at 1.75, and still get 1000 rights on the ex-date.(for 1.00)? Also being able to buy back those original 1000 shares when the SP drops because of all the selling.(basically taking advantage of the gap downward created by selling the shares after the hold date)
Is that a possible strategy taking place now?
What is happening today is why I said on the 21 July, that I didn't think we had seen the bottom yet. After each of the previous offerings the stock dropped to, or just below the offering prices. I still believe will drop closer to the $1.00 price between now and the ex-date, whenever that is.
NAT has dropped below it's recent low (5.47), although the recent contract news helps, I still think we have not seen the bottom yet. I will be watching for the RSI 14 day chart for possible trade entry point but not going long. Still have no confidence in CEO.
Plus, Pres.Trump spouting off about N.Korea will not help markets.
Institutional investors with 600...500...and 100 share?
I have over 1,000 shares...Maybe I should be in an institution...LOL
Now down .30
I don't know how many shares have been traded but Ameritrade says that EKSO is down .21 this AM...I guess people are not impressed with the earnings release and conference call.
Listened to conference call...Matt Keeler of Sun Trust asked several questions, one concerning the Rights Offering...The company cannot discuss much due to legal issues but the company will release a press briefing and prospectus w/ details shortly after 10 August.
20 GT units shipped...13 sales and 7 rentals. up from previous quarters
Over 25 demos in Europe and 25 in US
48 industrial units...32 works, 16 vests (all in the US)...remember that the Vest is just being released in Europe.
I believe he said the EKSO Vest demos were sold
I wasn't blown away by the call but was not disappointed either.
If anyone else listened to the call, I'd be interested on your take.
Earnings report is out...looks like -.22 where -.30 was expected missed on revenue...1.9 million where 2.69 million was expected
Looking at the 52 week chart NAT has been in a downtrend since Aug '16, has broken support at high $5 to $6 and is now near the low of $5.47 set 31 May. Earnings report doesn't look good and CEO does not instill confidence.
I believe a drop below $5 is coming and will be watching the RSI 14 chart for possible trade entry.
I have been watching since Dec. '16...Almost jumped in at $7.75 but had no confidence that the dividend would hold, in turn causing PPS to drop. Glad I stayed out. Still watching but Conix has had it right. I believe with this earnings release the bottom is a ways off. Watch the oversold chart for possible trade entry point. I have no confidence in NAT for an investment buy right now.
Zacks is a joke...they change there ratings constantly. Just last Wednesday they changed from Hold to Buy, now they have changed from Buy to Hold. Their price forecasts have been all over the place and none has come true. Plus these "investment articles" are a joke as well, they cram a pile of often untrue statistics together in poorly worded article that really doesn't say much at all or they just regurgitate what another article posted. The last link is to an article posted today that says EKSO is scheduled to release earnings on July 27th. It also says Zacks recently changed their rating from a sell to a hold with 2.25 target.
https://www.baseball-news-blog.com/2017/07/30/ekso-bionics-holdings-inc-ekso-downgraded-by-zacks-investment-research-to-hold-updated-updated.html
http://bangaloreweekly.com/ekso-bionics-holdings-inc-nasdaqekso-upgraded-at-zacks-investment-research-400847.html
https://www.chaffeybreeze.com/2017/07/31/zacks-analysts-anticipate-ekso-bionics-holdings-inc-nasdaqekso-will-post-quarterly-sales-of-2-20-million-updated.html
The way I understand it is that you can put your request in but they fill what is available. But, yes, basic rights first. The number exercised determines the number of left to be given out as over-subsciption. Then those are allocated depending on the number of requests and the number they are entitled to.
I don't know the time period. I guess we'll know on or shortly after the record date. As soon as the rights show in my Ameritrade account I am calling and exercising them.
From the press release...Note the word basic...I am interpreting this to mean that if you own 1000 shares, you are entitled to 1000 basic subscription rights, plus 1000 over-subscription rights (based on the basic subscription rights), BUT how many of those over-subscription rights you actually will be able to exercise depends on how many people choose not to exercise their original basic rights and how many over-subscription rights requests there are.
"Each holder of subscription rights will have a basic subscription right to purchase its pro rata portion of the shares of common stock offered in the proposed rights offering. The proposed rights offering will also include an over-subscription right, which will entitle a rights holder who exercises all of its basic subscription right in full the opportunity to purchase additional shares of common stock up to the amount of its basic subscription right, subject to the availability and pro rata allocation of shares among rights holders exercising their over-subscription right."
@ Dalcan and golfblues...I just got off the phone with Amertrade. It does not seem that there is any restriction on turning around and selling. With A-trade, you will see the rights show up as a separate holding with a CUSIP# (like we did when the R/S happened) it may be 10-15 days before I can start trading the shares once I have exercised my rights. With A-trade I can exercise my rights directly through them in minutes. If you use a broker, their policies and procedures may be different, but if you hold the actual certificates of your shares it will have to go through the transfer agent.
I would assume that if you normally purchase your shares anywhere other than A-trade, your certificates or rights will show up on your account and you should be able to exercise them with that company/broker. I suggest you call them soon so that you know what you want to do and how to do it before the ex-date. (that is not the record date) There will be a time period that you will be able to exercise your rights, as far I know, from what has been released so far, that period has not been established/released.
Also, be aware that it is possible to buy more than your allotted rights. That depends on the number of shares you own and the number of rights that are not exercised.
Hope that helps
I am still trying to find the answers to those questions, myself.
Looks like earnings release won't be until 3 Aug. (Ameritrade)
Earning release due today...let's see what progress they have made.
They don't have long to cancel...Record date is Aug 10, 2017...I'm sure they have thought this through. I believe the shelf that allows for the rights offering was filed in June of 2105. If this is the case, they have had this in the works for some time, so I am pretty confident that it will go through.
Over the last few months people have been worried about sales numbers, they have been wondering why the company isn't doing anything about it. Well, to me it looks like they have been doing something for some time. Now some people are not happy with the rights offering, giving all kinds of explanations as to why they are not buying.
I, for one, believe the company is doing what it needs to in order to become successful and intend to buy my allotted basic share and will be happy to purchase any and as many shares, through over-subscription rights, that anyone declines to purchase.
Here is a link that you can access the articles I posted and many others, along with some other good background information.
http://exoskeletonreport.com/?s=Ekso+bionics
Another article, this one from Jan. '17
http://exoskeletonreport.com/2017/01/ppmd-awards-600000-duchenne-research-study-ekso-bionics-will-gain-orders/
This is a previously released (2015) article and video, I thought I would post it for anyone looking for info on EKSO products
http://exoskeletonreport.com/2015/03/op-ed-ekso-bionics-reveals-new-exoskeleton-for-industrial-use-similar-to-fortis/
@ Doc...If you read the second paragraph,
"Each holder of shares of common stock as of the record date will receive, at no charge, one subscription right for each share of common stock owned on the record date, and certain holders of warrants issued by the company on the record date will receive subscription rights pursuant to the terms of the warrants.
Each holder of subscription rights will have a basic subscription right to purchase its pro rata portion of the shares of common stock offered in the proposed rights offering. The proposed rights offering will also include an over-subscription right, which will entitle a rights holder who exercises all of its basic subscription right in full the opportunity to purchase additional shares of common stock up to the amount of its basic subscription right, subject to the availability and pro rata allocation of shares among rights holders exercising their over-subscription right.
If I am reading this correctly, I believe it is possible, depending on conditions, (availability and allocation) to triple your position. Your initial one subscription right for each share you own (basic subscription right) and any available over-subscription rights, up to the number of basic rights you are entitled to.
I would appreciate correction if I am wrong. I don't want to mislead anyone.
This is a comment from another message board that I find interesting and worth looking into...(it also re-states the point I made about Puissance)
Everyone needs to Google Ted Wang who has a PHd in Physics and former Goldman Sachs Partner and member of Investment Committee. After leaving GOLDMAN, he and other senior GOLDMAN "folks" founded Puissance Capital Management(Google them as well). Puissance is committed for all the stock that does not get purchased subject to the Max CAP of 40% ownership of EKSO. After reading about TED WANG and Puissance, it is fairly obvious that Puissance is not in this to allow EKSO to fail or file Bankruptcy("throw away $35million). It is also a fair assumption that relatively newly appointed DIRECTOR Howard Palefsky and TED WANG's paths have crossed before after reading about Mr. Palefsky's(BIO) past positions, successes, and relationships in investments and Biotech and startups, which is obviously the reason the EKSO people brought him on board. Therefore, it is most likely he was a key player in putting EKSO in touch with Ted Wang and Puissance to help get this train moving in the right direction. ("strong food for thought.")
Rhet...I believe this explains it thoroughly.The way I read it is that Puissance Capital agees to buy all rights that are left after shareholders have the chance to buy one share for each share they own as of the record date. Meaning, if everyone allows their rights to expire Puissance will buy 34 million share at $1.00.(unless that exceeds 40% share holder) Depending on how many shareholders execute their rights and how many of their rights, Puissance will buy the remaining shares. It is not offering the rights to the public (non-shareholders) but to shareholders and Puissance. If you choose to allow your rights to expire you will not be offsetting the dilution that comes with issuing of the 34 million shares.
RICHMOND, Calif., July 19, 2017 (GLOBE NEWSWIRE) -- Ekso Bionics Holdings, Inc. (NASDAQ:EKSO), an industry leader in exoskeleton technology for medical and industrial use, today announced that its board of directors has approved a proposed rights offering to raise gross proceeds of up to $34,000,000.
The rights offering is proposed to be made through the pro rata distribution of non-transferable subscription rights to purchase, in the aggregate, up to 34,000,000 shares of the company’s common stock at a subscription price of $1.00 per share, to shareholders and certain warrant holders of the company on the record date of August 10, 2017.
Each holder of shares of common stock as of the record date will receive, at no charge, one subscription right for each share of common stock owned on the record date, and certain holders of warrants issued by the company on the record date will receive subscription rights pursuant to the terms of the warrants.
Each holder of subscription rights will have a basic subscription right to purchase its pro rata portion of the shares of common stock offered in the proposed rights offering. The proposed rights offering will also include an over-subscription right, which will entitle a rights holder who exercises all of its basic subscription right in full the opportunity to purchase additional shares of common stock up to the amount of its basic subscription right, subject to the availability and pro rata allocation of shares among rights holders exercising their over-subscription right.
Puissance Capital Management (“Puissance”), pursuant to a purchase agreement entered into between Puissance and the company, has committed to purchase, at the subscription price of $1.00 per share, any unsubscribed shares of common stock following exercise of the basic subscription right, provided that the number of shares purchased by Puissance is subject to a cap such that Puissance will not own more than 40% of the company’s outstanding shares of common stock following the proposed rights offering.
The shares of common stock to be sold to Puissance pursuant to the purchase agreement will not be registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The Company has agreed, subject to certain terms and conditions, to file a registration statement under the Securities Act covering the resale of the securities to be sold to Puissance pursuant to the purchase agreement.
The company is planning to commence the proposed rights offering in August of 2017 in order to raise equity capital in a timely and cost-effective manner, while providing its shareholders the opportunity to participate. The commencement and expiration dates of the rights offering will be included in the prospectus supplement to be filed with the Securities and Exchange Commission at the commencement of the proposed rights offering.
The company intends to use the net proceeds from the proposed rights offering to (i) expand clinical, sales and marketing initiatives to accelerate adoption of the Ekso in the rehabilitation market and broaden the Ekso footprint into Asia, (ii) to increase research, development and commercialization activities with respect to an Ekso robotic exoskeleton for home use, and/or (iii) in the development and commercialization of able-bodied exoskeletons for industrial use, and for working capital and other general corporate purposes.
The company reserves the right to modify, postpone or cancel the proposed rights offering at any time prior to the closing of the sale of the shares of common stock in the proposed rights offering.
The proposed rights offering will be made pursuant to the company’s effective shelf registration statement on Form S-3 (Reg. No. 333-218517) on file with the Securities and Exchange Commission. The information herein is not complete and is subject to change. Investors should consider the company's investment objective, risks, charges and expenses carefully before investing. The base prospectus contains this and additional information about the company and the prospectus supplement to be filed at the commencement of the proposed rights offering will contain this and additional information about the rights offering, and should be read carefully before investing. You may obtain these documents for free at the website of the Securities and Exchange Commission, www.sec.gov. Alternatively, the Company will arrange to send you the registration statement, including the prospectus, if you request it from the contact persons listed at the bottom of this release.
This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sales of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
@ Doc...I believe I read that the rights are non-transferable, so I am under the impression that option 3 is off the table. Also, you will have the opportunity to buy additional shares (above the number of rights you are entitled to). I believe this is a good opportunity to dollar cost average down even more. The only question is, do you believe that the reason for the offering is for the reasons stated my the company (to better position the company) or is it just a ploy to save a floundering company? I believe it is the former.
"The rights offering is proposed to be made through the pro rata distribution of non-transferable subscription rights to purchase, in the aggregate, up to 34,000,000 shares of the company’s common stock at a subscription price of $1.00 per share, to shareholders and certain warrant holders of the company on the record date of August 10, 2017. The proposed rights offering will also include an over-subscription right, which will entitle a rights holder who exercises all of its basic subscription right in full the opportunity to purchase additional shares of common stock up to the amount of its basic subscription right, subject to the availability and pro rata allocation of shares among rights holders exercising their over-subscription right."
Another point to consider it that the company guaranteeing the offering, Puissance Capital Management, has committed to purchasing all unsubscribed shares after everyone excerises their rights. (up to 40% share ownership). The more people that take option 2 and let their rights expire, the stronger their (Puissance) position will be.
I also believe that option 2 is not the right move because that ensures the dilution. Option one offsets the dilution. If anyone can confirm or correct my assumption it would be appreciated.
It is hard to read what investors are thinking about the Rights Issuance. Was yesterday just a knee-jerk reaction before thinking it through or is today just setting up for another leg down?
According to the RSI 14 chart, we did not reach oversold, but I do understand what you are saying. We were at 35.77, 30 is oversold. Also, looks like there is a bit of support at the 1.45(ish) area. I'm thinking we haven't seen the bottom yet. Good earnings could change my opinion on that though.
From Investopedia...
Shareholders have three available options in response to the rights offering. The first option is to accept the rights offering in full or in part, purchasing as many shares as they wish, up to the total number of shares they are entitled to under the terms of the offering. The second option is to ignore the rights offering and let the rights expire without purchasing any additional shares. The third option is to transfer or sell their rights to another party. Some rights, known as non-renounceable rights, are not transferable.
*** Note: If you allow the rights to expire you will not offset the dilution that occurs because of the right issuance.
@ golfblues, I did see a post like that on another message board
I must have missed that post and I can't find it either. I also don't see anyone cheer leading here either. Most people (except for the occasional one time posters) on here truly believe in the company's technology and the benefits that it's products bring. Almost all of the posts are of information from the company, investment articles or related discussions.
Some of my posts are made to demonstrate as proof of what my holdings and intentions are and my reasons for what actions I take and to also show the results of my action so that people may benefit from my mistakes or successes.
I have learned some things the hard way, made mistakes and changed my approach several times, but I study this stock, it's charts, it's news releases and the (mostly BS) stock papers articles every day, and have for the last 2 years. Right now I play the ups and downs to gain free shares which are added to my long position.
I can't and will never say that EKSO will definitely make anyone rich or become the next APPLE but I am doing everything I can to put myself in a good position should it be successful. If anything I post can help other posters or even the company succeed then I will try to pass it on.
I will say that some posters are more optimistic than me at times but I take the information they bring and add it and compare it to everything I have read about the stock. It doesn't hurt to have extra info as long as it is factual.
I know everyone is saying this is not good, but I look at it this way. The other offers they made didn't give the shareholder a chance to get in on cheap shares.
Here is a link that explains Rights Issuances.
http://www.investopedia.com/articles/stocks/05/062905.asp
I have the 100% profit from selling half my shares sitting on the side for just such an occasion. Like "formerdtrader" said, a chance to double my shares, and with house money.