IPO Outlook: WLDS, KNW

By Duncan Ferris

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This week's expected IPOs include possible listings from Wearable Devices (NASDAQ: WLDS) and Know Labs (NYSEAMERICAN: KNW).

Wearable Devices (NASDAQ: WLDS)

Wearable Devices' IPO comprises an offering of 3,600,000 units of one ordinary share and one warrant for the purchase of an ordinary share. The company anticipates that the initial public offering price for its share will be in the range of $5.20 to $7.20 per unit. The company's IPO has already been pushed back multiple times, so may not occur in the week ahead.

What Do Wearable Devices Do?

This Israeli company is focused on developing a non-invasive neural input interface in the form of a wearable wristband for controlling digital devices using subtle finger movements.

Wearable Devices works with Business-to-Business (B2B), and Business-to-Consumer (B2C), customers as part of its push-pull strategy. The business is now in the transition phase from research and development to commercialization of its technology into B2B products.

At the same time, Wearable Devices is in the final stage of manufacturing its first B2C consumer product, the “Mudra Band”, an aftermarket accessory band for the Apple Watch which allows touchless operation and control of the watch and iPhone.

The company says its vision is to create a world in which the user’s hand becomes a universal input device for interacting with technology, while it also believes that its technology is setting the standard input interface for the Metaverse.

Who is Leading the WLDS IPO?

Aegis Capital Corp is set to act as the listing’s sole book-running manager.

Use of WLDS IPO Proceeds

Approximately $1.95m of the proceeds of the IPO will go towards the manufacture of the Mudra Band for the Apple Watch. A further $2.4m will go towards marketing for the Mudra Band product.

Around $3.3m is earmarked for the continued research and development of the company’s Mudra technology, while approximately $2.1m is for sales and support of B2B customers and for the integration and licensing Mudra technology into B2B customers’ products.

Smaller amounts will be put towards a cash payment to Alpha as compensation for their consent to this offering, as well as working capital and general corporate purposes.

Know Labs (NYSEAMERICAN: KNW)

This company is offering 3,000,000 shares of its common stock and estimates that the public offering price will be roughly $2.00 per share.

Currently, the company’s common stock is traded on the OTC Market's QB tier (OTCQB), under the symbol KNWN. Before the market commenced trading on Monday 5 September the share price stood at $2.23.

What Does Know Labs Do?

Know Labs is focused on the development and commercialization of proprietary biosensor technologies. The company says that when paired with its artificial intelligence deep learning platform, the technology is capable of uniquely identifying and measuring almost any material or analyte.

This analysis is conducted using Know Labs' trade secret algorithms which are driven by its AI deep learning platform.

The company’s focus is upon analytes relating to human health, the identification of which provides diagnostic information and requires, by their nature, clearance by the United States Food and Drug Administration.

The business is currently undertaking internal development work on potential products for the commercial marketplace. It has announced the development of a non-invasive glucose monitor, along with its desire to obtain FDA clearance for the marketing of this product. Know Labs reports that it has also engaged a manufacturing partner to bring this product to market.

Who is Leading the KNW IPO?

The company’s IPO is being headed by lead underwriters Boustead Securities, LLC.

Use of KNW IPO Proceeds

After deducting the estimated underwriters’ discounts and commissions and offering expenses, Know Labs says it expects to receive net proceeds of approximately $5.30m from this offering.

Of this, around $1.8m is earmarked for research and development, $1.3m is to be put aside for sales and marketing, and $883,000 will pay for general and administrative expenses. The remaining roughly $1.3m will go towards working capital and capital investments.

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In this article:

Topics:
IPO
Healthcare Technology
Household Durables
Industries:
Healthcare
Consumer Discretionary

Author: Duncan Ferris

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Duncan Ferris does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above article.

Duncan Ferris has not been paid to produce this piece by the company or companies mentioned above.

Digitonic Ltd, the owner of ValueTheMarkets.com, does not hold a position or positions in the stock(s) and/or financial instrument(s) mentioned in the above article.

Digitonic Ltd, the owner of ValueTheMarkets.com, has not been paid for the production of this piece by the company or companies mentioned above.

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