Microbot (MBOT) Extends 4-Day Decline on $63-Million Fundraising Program

We recently published 10 Stocks Losing Big Amid Market Boom. Microbot Medical Inc. (NASDAQ:MBOT) is one of the worst performers on Thursday.

Microbot extended its losing streak to a fourth consecutive session on Thursday, shedding 6.93 percent to close at $3.09 apiece as investor sentiment was dampened by a potential dilution from a fundraising program that could deliver the company worth $63 million.

In a statement earlier this week, Microbot Medical Inc. (NASDAQ:MBOT) said it was able to raise $25.2 million from an options exercise, covering 12.06 million shares at a price ranging from $1.5 to $2.13 apiece.

Microbot (MBOT) Extends 4-Day Decline on $63-Million Fundraising Program

Master Video/Shutterstock.com

A second offering is set to close on October 15, with more than 1.9 million shares expected to be exercised at a price of $2.10 apiece, for around $4 million in fundraising potential.

In consideration of the exercise, the company will issue to the said shareholders new short-term series J preferred investment options with an exercise price of $4.5 apiece, exercisable beginning six months after issuance.

Share prices fell on Thursday as investors reacted negatively to the fundraising program, given the potential dilution of existing stocks.

According to Microbot Medical Inc. (NASDAQ:MBOT), net proceeds are intended to be used to continue with the development, commercialization, and regulatory activities for its LIBERTY Robotic System, alongside potential acquisitions of complementary assets or products, expansion and development of additional applications derived from its existing IP portfolio, and for working capital and other general corporate purposes.

While we acknowledge the risk and potential of MBOT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MBOT and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.