The San Diego-based insulin pump maker intends to offer more than 5.45 million shares of its common stock at $1.50 per share. It expects proceeds to total $8.2 million before deducting discounts, commissions and estimated offering expenses. The company plans to use the proceeds to fund operations and for working capital and general corporate purposes.
Existing institutional investors, including Manchester Explorer — the company’s largest shareholder — participated. CEO Jeb Besser manages Manchester Explorer, which led the company’s $10 million financing round in February. Titan Partners Group, a division of American Capital Partners, acted as sole bookrunner for the offering.
Modular Medical develops patented insulin delivery technologies, aiming to improve access to glycemic control. Its founder, Paul DiPerna, previously founded leading insulin pump maker Tandem Diabetes Care. DiPerna invented and designed Tandem’s t:slim pump.
Modular Medical designed the 90-day MODD1 with new microfluidics technology to allow for the low-cost pumping of insulin. Its new intuitive design makes the product simple to use and easier to prescribe.
The pump has a reservoir size of 300 units/3mL. Users can monitor the pump activity with their cell phone and do not require an external controller. The pump uses a provided, single-use, disposable battery.
Modular Medical picked up FDA clearance for MODD1 in September.
