8-K: Vivos Therapeutics Secures $4.3 Million in At-The-Market Stock Offering

Vivos Therapeutics, Inc. has announced a registered direct offering to sell 1,363,812 shares of its common stock at $3.15 per share, raising approximately $4.3 million.

Summary

• Vivos Therapeutics, Inc. (NASDAQ: VVOS), a medical technology company specializing in sleep-related breathing disorder treatments, has entered into a securities purchase agreement with institutional investors.
• The agreement involves a registered direct offering of 1,363,812 shares of Vivos' common stock at a purchase price of $3.15 per share.
• This offering is priced at-the-market under Nasdaq Stock Market rules, with no common stock purchase warrants being issued.
• The gross proceeds from this offering are estimated to be around $4.3 million, before accounting for placement agent fees and other offering expenses.
• Vivos intends to use the net proceeds for working capital and general corporate purposes.
• The closing of the offering is anticipated to occur on or about September 20, 2024, contingent upon the fulfillment of standard closing conditions.
• H.C. Wainwright & Co. is serving as the exclusive placement agent for this offering.

Sentiment

Score: 6

Explanation: The sentiment is slightly positive due to the successful capital raise and at-the-market pricing, but tempered by the dilutive nature of the offering and the company's history of needing to raise capital.

Positives

• The offering is priced at-the-market, suggesting investor confidence in the company's current valuation.
• The capital raise of $4.3 million will strengthen the company's financial position.
• The proceeds will provide working capital and support general corporate purposes, potentially fueling growth and expansion.

Negatives

• The offering will dilute existing shareholders' ownership.
• The company has a history of needing to raise capital, indicating potential challenges in achieving profitability.

Risks

• Vivos may be unable to implement revenue, sales, and marketing strategies that increase revenues.
• Some patients may not achieve the desired results from using Vivos' products.
• The sleep apnea treatment sector faces regulatory scrutiny and potential adverse publicity.
• Vivos may be unable to secure additional financing on reasonable terms when needed or maintain its Nasdaq listing.

Future Outlook

The company intends to use the net proceeds from the offering for working capital and general corporate purposes. No specific guidance on future financial performance is provided.

Management Comments

• No specific management comments are included in the document, other than those related to forward-looking statements.

Industry Context

This announcement is relevant to the medical technology and sleep apnea treatment sectors. Vivos is positioning itself within the market for non-surgical, non-invasive treatments for sleep-related breathing disorders.

Comparison to Industry Standards

• Vivos' approach to treating OSA using its proprietary CARE appliance therapy is presented as a unique alternative to traditional treatments like CPAP therapy, which is commonly used by competitors such as ResMed and Philips Respironics.
• ResMed and Philips Respironics primarily focus on CPAP devices and masks, while Vivos offers a non-invasive oral appliance therapy.
• Compared to surgical interventions offered by some companies, Vivos' method is highlighted as a less invasive and more cost-effective solution.
• The document mentions over 45,000 patients treated worldwide, which is a significant number but may be lower compared to the larger installed base of CPAP devices from industry giants like ResMed and Philips Respironics.

Stakeholder Impact

• Existing shareholders will experience dilution of their ownership due to the issuance of new shares.
• The company will have increased working capital, potentially benefiting its operations and growth prospects.
• Employees may benefit from the company's strengthened financial position.
• Customers may benefit from continued product development and innovation.

Next Steps

• The company will file a final prospectus supplement and the accompanying base prospectus relating to the registered direct offering with the SEC.
• The closing of the offering is expected to occur on or about September 20, 2024, subject to the satisfaction of customary closing conditions.

Key Dates

Keywords

Vivos Therapeutics, VVOS, registered direct offering, common stock, at-the-market, capital raise, institutional investors, working capital, sleep related breathing disorders, obstructive sleep apnea, OSA, medical device, technology, H.C. Wainwright & Co., placement agent, Form S-3, SEC, prospectus supplement