Massachusetts-based medical device developer Microbot Medical Inc. (MBOT) saw shares nearly double in value on Tuesday, Jan. 15, after announcing a $3 million investment in the company.
However, shares closed down 7.25%, at $9.08.
Microbot Medical -- which specializes in so-called "micro-robotic" medical technology -- said that an institutional investor is buying 455,323 shares of its common stock at $6.50 each. The shares were valued at $9.79 as of Monday's close.
The deal is slated to wrap up Wednesday, with H.C. Wainwright & Co. acting as the exclusive placement agent for the offering.
"It's a health care investor known well in the industry," Michael Polyviou of EVC Group, which is handling press for the company, told TheStreet. While Polyviou wouldn't give any other details of the investor, he did say it's a "firm" and not an individual.
The company plans to use some of the funds to further develop a device for the treatment of hydrocephalus and normal pressure hydrocephalus, an accumulation of spinal fluid in the brain that could be caused by surgery, injury, infection, aneurysm or other conditions.
Founded nearly nine years ago, Microbot was listed on Nasdaq in 2016 and is developing several devices including those for the treatment of hydrocephalus as well as an autonomous crawling micro-robot that can be "controlled remotely or within the body" including inside blood vessels, the digestive tract and the respiratory system.