Image via Myomo/Facebook
Shares began trading the morning of June 12th on the NYSE MKT under the ticker symbol “MYO.”
Myomo completed its initial public offering (IPO) under SEC Regulation A+, raising $5.0 Million through the sale of 665,498 shares of its common stock at a price to the public of $7.50 per share. The company also closed on a private sale of restricted securities to accredited investors, the majority of whom were early investors in Myomo, for proceeds of $2.9 Million. The combined capital raised is $7.9 Million, adding to $20 million already raised privately.
Myomo is a commercial stage medical robotics company that offers expanded mobility for those suffering from neurological disorders and upper limb paralysis. Their products have inherent consumer appeal which is very important at this early stage of the establishment of Reg A+ as a recognized capital raising and liquidity system. This consumer appeal provided the potential for online marketing to build interest and investment flow from consumers.
Because Myomo took a hybrid approach, successfully raising capital from both Wall Street (retail brokerage) and Main Street investors, they created a win-win situation where the combination made for a critical mass of investors and ultimately their IPO completion.
Myomo started their offering in early March and completed it in just less than three months. Paul Gudonis, CEO of Myomo said: “While a traditional public offering is generally reserved for large institutions and the Wall Street elite to invest at this stage, we are taking advantage of new SEC regulations to level the playing field for all investors to participate concurrently in our IPO.”
Darren Marble, CEO of CrowdFundX said “This deal would not have been possible without the vision of Myomo CEO Paul Gudonis. The Issuers are the true pioneers in our industry, and we are here to support their bold quest to break new ground. Myomo, despite its impressive medical technology, did not have a built-in affinity group to market the crowd campaign to. As such, we were forced to innovate.”
Mark Elenowitz, CEO of TriPoint said: “The Myomo offering was pioneering and sets the stage for small-cap issuers to access the capital markets in the modern age of U.S. capital formation, in addition, we applaud the NYSE for their vision and support for bringing back the small-cap IPO.”
Mark raises a good point in that clearly the NYSE leadership are taking a proactive approach in order to attract small cap IPOs via Reg A+ . A positive indicator in itself for the suitable companies waiting in the wings to conduct their IPOs. All involved service providers.
Myomo enables patients to regain essential mobility based on patented technology developed jointly with MIT. Their non-invasive, powered arm braces restore function in the paralyzed or weakened arms and hands of individuals that have suffered a stroke, spinal cord or nerve injuries such as brachial plexus injury, or other neuromuscular disability such as multiple sclerosis (MS).
So, what’s next?
This is a significant step forward for the Regulation A+ capital raising market. I expect that this success will increase awareness and credibility of Reg A+, which is helpful in what is a relatively new field. I also expect that this win will bring a number of Medtech and Biotech companies forward into their own Reg A+ offerings and IPOs.
In my experience companies in Medtech and Biotech tend to be led by CEOs that tend to be more analytic, and they are paying close attention to where their peers are having financing success.
There are many companies in this sector whose products have the necessary strong consumer appeal and that can make good use of Regulation A+ to succeed on their merits. I am looking forward to their emergence!
Rod is a Forbes Contributor. Read the read the full version of this column on Forbes.com.
Rod Turner is expert in entrepreneurship and raising capital. As CEO of Manhattan Street Capital he helps Real Estate, Mid-Stage companies, Startups & Rollups raise capital via Regulation A+. Check the Manhattan Street Capital our Blog for more in depth guidance. I hope you find this guidance informative and helpful!
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