The San Diego-based insulin pump maker offered just over 9 million shares of its common stock. It sold each share of common stock to the public at a price of $1.10 per share.
Manchester Explorer — managed by Modular Medical CEO Jeb Besser and board member Morgan Frank — led the financing. Other existing institutional investors also took part. Titan Partners Group, a division of American Capital Partners, acted as sole book-running manager for the offering.
Modular Medical plans to use the net proceeds to fund operations and for working capital and general corporate purposes, including capital expenditures. The company also granted underwriters a 30-day option to buy up to more than 1.3 million additional shares of common stock. These would cover over-allotments, if any, according to a news release.
About Modular Medical
The company 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.
Last month, the company submitted its MODD1 pump to the FDA in search of 510(k) clearance. Besser said the company expects initial questions from the FDA during the quarter ending June 30, 2024. While it works with the FDA, the company plans to prepare applications to garner marketing approval in the UK. Operationally, Modular Medical plans to move its pilot production line to its manufacturing partner to prepare for commercial launch.
