Wearable Devices Secures $5.68 Million Through Warrant Agreement with Institutional Investor

Wearable Devices Ltd. (NASDAQ: WLDS) has entered into a warrant inducement agreement with an existing institutional investor, resulting in the immediate cash exercise of warrants to purchase 3,322,000 ordinary shares at $1.71 per share. This transaction generates approximately $5.68 million in gross proceeds for the company, with A.G.P./Alliance Global Partners serving as exclusive financial advisor for the arrangement. The significance of this capital infusion lies in its timing and purpose, as Wearable Devices operates in the competitive and rapidly evolving wearable technology sector where research, development, and market expansion require substantial financial resources.

In exchange for the full cash exercise, the company will issue new unregistered warrants to purchase up to 5,813,500 ordinary shares at $1.86 per share. These warrants are exercisable upon shareholder approval and will expire five years after that approval. The closing of this transaction is expected on or about December 1, 2025, subject to customary closing conditions. This financial maneuver matters because it demonstrates continued institutional confidence in Wearable Devices' technology and business model while providing the company with working capital to execute its strategic initiatives without immediately diluting existing shareholders through a traditional equity offering.

The importance of this development extends beyond the immediate financial benefit. Wearable Devices is pioneering human-computer interaction through its AI-powered neural input touchless technology, with consumer products including the Mudra Band and Mudra Link that define the neural input category for wrist-worn devices and brain-computer interfaces. These products enable touch-free, intuitive control of digital devices using gestures across multiple operating systems, positioning the company at the intersection of several growing technology markets including gaming, productivity, and extended reality (XR) applications.

Operating through a dual-channel model of direct-to-consumer sales and enterprise licensing collaborations, Wearable Devices provides both consumers with stylish, functional wearables and enterprise partners with advanced input solutions for immersive and interactive environments. The company's technology has implications for how humans interact with digital devices in increasingly complex environments, from augmented reality and virtual reality applications to smart environments where traditional input methods may be impractical or inefficient. By setting the standard for neural input in the XR ecosystem, Wearable Devices is shaping the future of seamless, natural user experiences across some of the world's fastest-growing tech markets.

The $5.68 million in proceeds from this warrant inducement agreement provides Wearable Devices with capital to continue developing and marketing its proprietary technology at a critical juncture in the wearable technology market's evolution. As noted in the company's disclosures, the latest news and updates relating to WLDS are available in the company's newsroom at https://ibn.fm/WLDS. This financial development supports the company's position as it competes in markets where technological advancement requires sustained investment in research, development, and market penetration strategies to establish and maintain competitive advantages in the emerging field of neural interface technology.