LITTLETON, Colo. - Vivos Therapeutics, Inc. (NASDAQ:VVOS), a medical device and technology company focused on sleep-related breathing disorders, has entered into a definitive agreement with an institutional investor for the exercise of a common stock purchase warrant, resulting in approximately $4 million in gross proceeds for the company. The transaction, announced today, involves the issuance of 980,393 shares of common stock at a revised exercise price of $4.02 per share.
The original warrant, issued in November 2023 with an exercise price of $3.83 per share, has been modified as part of the agreement. In exchange for the immediate cash exercise of the warrant, Vivos will issue two new unregistered warrants to the investor. These warrants will allow the purchase of an additional 1,470,592 shares of common stock at $5.05 per share. One of the new warrants will be valid for five years, while the other will have a term of eighteen months.
A.G.P./Alliance Global Partners (NYSE:GLP) is serving as the exclusive financial advisor for the offering. The closing of the transaction is expected by February 20, 2024, subject to customary closing conditions. The net proceeds from the warrant exercise are intended for general corporate purposes by Vivos.
The securities mentioned in this transaction, including the new warrants and the shares of common stock issuable upon their exercise, have not been registered under the Securities Act of 1933, as amended, and are being offered in a private placement under an exemption from registration requirements. Vivos has committed to filing a registration statement with the SEC for the resale of the common stock shares issuable upon exercise of the new warrants.
Vivos Therapeutics is known for developing The Vivos Method, a non-surgical and non-pharmaceutical solution for treating obstructive sleep apnea (OSA) and other sleep and breathing issues resulting from dentofacial abnormalities. The company has reported successful treatment in approximately 40,000 patients worldwide.
This press release statement is the basis for the reported information.
InvestingPro Insights
Amidst the recent developments with Vivos Therapeutics, Inc. (NASDAQ:VVOS), an analysis of the company's financial health and market performance reveals several key insights. According to InvestingPro data, Vivos Therapeutics currently has a market capitalization of 6.11 million USD, which reflects the market's valuation of the company. Despite the company's efforts to raise capital, the financial metrics indicate challenges ahead. For instance, the company's revenue over the last twelve months as of Q3 2023 stands at 14.5 million USD, with a notable decline of 11.93% during the same period. This contraction in revenue is echoed in the quarterly figures, which show a decrease of 22.26% for Q3 2023.
Moreover, Vivos Therapeutics is trading at a high Price / Book multiple of 131.44, an indicator that the stock might be overvalued relative to the company's book value. This could be a concern for value-oriented investors. The company's gross profit margin remains strong at 59.06%, yet it is overshadowed by a negative operating income margin of -132.57%, highlighting the company's struggle to manage its operating expenses relative to its gross profit.
InvestingPro Tips for Vivos Therapeutics indicate that the stock is currently in oversold territory according to the RSI, which may interest traders looking for a potential rebound. However, it's important to note that analysts anticipate a sales decline in the current year, and the company's stock price has experienced significant volatility. As of now, there are 14 additional InvestingPro Tips available for Vivos Therapeutics, providing a deeper analysis of the company's financial and market performance.
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