Modular Medical, Inc. priced an underwritten public offering of 12,173,000 shares of common stock and 6,086,500 warrants to purchase shares. The offering was priced at $0.77 per two‑share‑warrant package, translating to an effective price of $0.38 per share and $0.01 per warrant, and is expected to raise approximately $4.68 million in gross proceeds.
The company is a pre‑revenue, development‑stage entity that reported a net loss of $6.7 million in the first quarter of 2026, up from $4.13 million in the same period a year earlier, and has accumulated losses of roughly $91.45 million. Cash burn remains high, and the firm has faced scrutiny from Nasdaq for falling below the $1.00 minimum bid price, a compliance issue that has added urgency to the capital raise.
Investors reacted negatively to the announcement, citing the dilutive impact of issuing a large number of new shares and warrants at a discount to recent trading levels. The dilution concern is amplified by the company’s fragile financial position and the Nasdaq compliance deadline, which together heighten investor anxiety.
Proceeds from the offering will be used to fund ongoing operations, working capital needs, and capital expenditures required to advance the commercialization of the company’s FDA‑cleared patch pump. The capital infusion is intended to bridge the gap between regulatory approval and market launch, enabling the firm to scale production and expand its sales network.
Management emphasized the company’s mission to “improve access to the highest standard of glycemic control for people with diabetes, taking it beyond ‘superusers’ and providing ‘diabetes care for the rest of us.’” The statement underscores the strategic focus on a broad market segment and the need for additional resources to support that ambition.
The offering represents a significant dilution event for existing shareholders and highlights the challenges faced by a pre‑revenue medical device company that must secure external funding to sustain its development trajectory while navigating regulatory and market entry hurdles.
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