ReWalk Robotics stock dives 30 percent after investment delays, missed earnings
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ReWalk's prototype for a system to help stroke patients walk.
Shares of Marlborough medical robotic company ReWalk Robotics dove by about one-third Tuesday as the company wasn’t able to provide a full second-quarter financial statement and a delay in the closing of an investment.
The company’s stock opened trading Tuesday down 24 percent, and that loss increased to 30 percent by 11 a.m. to a low price of 87 cents.
The dive follows last Friday’s gain of 73 percent from 72 cents to $1.25 after the company announced expanded access of its exoskeleton suit for spinal cord injuries for U.S. veterans.
Preliminary results for the company’s second quarter showed revenues of $1.8 million, down from last year’s $2 million. For the year, the company has taken in $3.4 million, also down from last year’s $4.5 million.
The company was able to place just 21 units for the quarter and 44 for the year, down from the respective 31 and 68 placed last year.
However, there were 250 pending insurance claims for ReWalk coverage as of June 30, compared to just 217 by that time last year.
The company is losing cash, with just $9.1 million on hand as of June 30, compared to $16.3 million at that time last year and $14.6 million at the end of 2017.
ReWalk will also be waiting a bit longer for the second installment of a $20 million investment agreement with Chinese investment firm Timwell Corp. Limited. The first $5 million for 4 million ReWalk’s shares closed in May, and another $10 million for 8 million shares was supposed to close by July 1 or within 20 days of a joint venture with an affiliate of Timwell.
In a filing with the U.S. Securities and Exchange Commission, ReWalk said “different jurisdictions involved and certain technical and administrative delays” have halted that funding, but the parties continue to work toward the funding.
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