AUSTIN, TX - Monogram Technologies Inc. (NASDAQ:MGRM), an AI-driven robotics company specializing in orthopedic surgery solutions, has initiated a continuous public offering to raise up to $10 million. The offering includes units priced at $2.25 each, consisting of one share of 8.00% Series D Redeemable Convertible Cumulative Preferred Stock and a warrant to purchase common stock at $3.375 per share.
Upon full sale of the units, Monogram anticipates net proceeds of approximately $9.25 million after deducting estimated commissions and offering expenses. The Series D Preferred Stock, which pays an annual dividend of $0.18 per share, is convertible into common stock at a 1:1 ratio and can be redeemed by the company at a declining premium over time.
Digital Offering, LLC is serving as the sole lead managing selling agent for the offering, which is available to investors through Monogram's website. There is currently no public market for the Series D Preferred Stock or the warrants, and no plans for listing on any national securities exchange have been announced.
Benjamin Sexson, CEO of Monogram Technologies, expressed enthusiasm for the offering, highlighting the opportunity for the company's followers and shareholders to participate in an offering typically exclusive to institutional investors.
The offering is being made pursuant to a prospectus supplement filed with the Securities and Exchange Commission, which provides detailed information about the company and the securities involved.
Monogram Technologies is developing a product solution architecture that includes 3D printing, advanced machine vision, AI, and next-generation robotics. Its mBós precision robotic surgical system, which is awaiting FDA clearance, is designed for high-precision orthopedic surgeries.
This news is based on a press release statement from Monogram Technologies Inc. The company cautions that statements regarding the use of net proceeds and other forward-looking statements involve risks and uncertainties and are not guarantees of future performance.
In other recent news, Monogram Orthopaedics has been making significant strides in its operations. The company recently received positive feedback from the FDA, which is expected to accelerate its 510(k) submission plans for the mBôs™ Total Knee Arthroplasty (TKA) System.
This feedback supports a least burdensome approach to clinical data acquisition, which Monogram believes will aid in a successful submission. The proposed clinical trial involves approximately 100 knee surgeries across three sites, a strategy that could save the company significant costs and time.
Moreover, Monogram Orthopaedics has joined the NVIDIA (NASDAQ:NVDA) Inception program, a collaboration expected to expedite the development and commercialization of its robotic surgical system. The program provides access to advanced technical tools, industry introductions, and co-marketing opportunities, which will be instrumental in advancing Monogram's product launch and developing its next-generation product pipeline.
These are among the recent developments for Monogram Orthopaedics, which is also planning to complete system verification and validation, submit the 510(k) application, and commence international clinical trials in 2024.
Still, it is important to note that Monogram has not yet made 510(k) submissions or obtained clearances for its robotic products and cannot predict the timing or guarantee success in obtaining FDA approval.
InvestingPro Insights
Monogram Technologies Inc. (NASDAQ:MGRM) is navigating through a challenging financial landscape as it seeks to raise capital through a continuous public offering. With a market capitalization of approximately $67.14 million, the company's financial position is characterized by a lack of profitability, as reflected in its negative P/E ratio of -4.98 for the last twelve months as of Q1 2024. Despite this, Monogram holds more cash than debt on its balance sheet, which is a positive sign for potential investors considering the current offering.
The company's aggressive cash burn rate is notable, with an operating income margin of -4652.92% for the same period, indicating significant operating losses. This aligns with the InvestingPro Tip that Monogram is quickly burning through cash, which is a critical factor for investors to consider, especially when evaluating the company's long-term sustainability.
On the upside, analysts anticipate sales growth in the current year, providing a glimmer of hope for future revenue streams. Still, they do not expect the company to be profitable this year, which could be a concern for those looking for short-term gains.
Investors interested in Monogram Technologies may find additional insights and metrics, including 8 more InvestingPro Tips, which could help in making a more informed investment decision. These tips are accessible at: https://www.investing.com/pro/MGRM. To access these insights, consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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