ReWalk Robotics Ltd. (RWLK), a medical device company, has surged 52.71% in aftermarket trading session and consequently is trading at $1.97 at the time of the writing. The surge could be attributed to the FDA’s award of breakthrough device designation to ReWalk ReBoot Soft Exo-Suit. On Thursday, RWLK closed the day at $1.29 after declining 1.53% during the mid-day session.
Why RWLK Surging
In the late hours of Thursday, RWLK announced that FDA has granted its ReBoot device with designation as a Breakthrough device. The device is a battery-powered, light in weight orthotic exo-suit. It is intended to assist the ambulatory functions in people with declined functioning of ankles. It is a customizable device and intended to be used at home. ReStore device, a device that was approved by FDA in 2019, is a sister product of ReBoot.
Closure of Offering
On 29th September, RWLK announced the closing of its previously announced registered direct offering. The offering was priced at the market in pursuance of the NASDAQ rules. It was intended for the sale of 16,013,518 of the Company’s ordinary shares at a purchase price of $2.035 per share. The company estimated that the gross proceeds from the offering would be around $32.5 million. H.C. Wainwright & Co. acted as the exclusive placement agent for the offering.
Q2 2021 Financial Results
On 9th August, RWLK reported the financial results for the second quarter of the fiscal year 2021. The quarter ended on 30th June. The company generated total revenue of $1.4 million during the quarter against $1.7 million for the same period of 2020. The total operating expenses for the period were $3.9 million against $3.6 million for the same period of 2020. The company suffered a net loss of $3.1 million during the quarter against $2.9 million for the same period of 2020. On 30th June 2021, the company had $64.2 million in terms of cash.
Larry Jasinski, Chief Executive Officer of RWLK, while commenting on the results said that the second-quarter results reflect the ongoing reopening of the markets. He expatiated that the company is expanding its resources to achieve its goals.
Future Outlook for RWLK
RWLK has not seen a rapid decline or surge during the last 12 months, which depict that the minimal stimulating factors acted on the company during the period. However, estimates suggest that the company is in a good position to take its business forward in the coming quarters.