Wearable Devices Ltd. Announces a Warrant Inducement Transaction for $1.2 Million in Gross Proceeds

Core Viewpoint - Wearable Devices Ltd. has announced a warrant inducement transaction that will generate approximately $1.2 million in gross proceeds through the immediate exercise of existing warrants, aimed at enhancing working capital and supporting general corporate purposes [1][2]. Group 1: Warrant Inducement Transaction - The company has entered into a warrant inducement agreement with an institutional investor for the immediate exercise of existing warrants to purchase up to 625,000 ordinary shares (January Warrants) and 205,500 ordinary shares (November Warrants) at a reduced exercise price of $1.45 per share [1]. - The total gross cash proceeds from this transaction are expected to be around $1.2 million, before deducting fees and expenses [1]. - The closing of this transaction is anticipated to occur on or about April 30, 2025, subject to customary closing conditions [2]. Group 2: New Warrants and Private Placement - In exchange for the immediate exercise of the existing warrants, the investor will receive new unregistered warrants to purchase up to 1,661,000 ordinary shares at the same exercise price of $1.45 per share, which will be exercisable upon issuance and will expire five years later [2]. - The private placement of the new warrants will be conducted under an exemption from registration, meaning these securities cannot be offered or sold in the U.S. without an effective registration statement or applicable exemption [3]. Group 3: Company Overview - Wearable Devices Ltd. is a pioneering company focused on revolutionizing human-computer interaction through AI-powered neural input technology, targeting both consumer and business markets [5]. - The company’s flagship products, such as the Mudra Band and Mudra Link, enable touch-free interaction by converting subtle movements into intuitive controls, enhancing experiences in gaming and the expanding AR/VR/XR sectors [5]. - Wearable Devices operates a dual-channel business model, including direct-to-consumer sales and enterprise licensing, positioning itself as a leader in the rapidly growing tech sector [5].