Transenterix's Shares Fall 10%: Here's Why

Shares of

Transenterix IncTRXC

, a medical device company that focuses on robotic assisted surgery, were trading lower by around 15 percent early Wednesday morning after the company

announced

on Tuesday it plans to offer and sell up to $43.56 million of its common stock. Transenterix noted that it plans on using the net proceeds from the offering for "payment of obligations as they come due, including scheduled payments under our existing loan agreement and installment payments to

SOFAR under the ALF-X Acquisition agreement, research and development and sales, marketing and commercialization activities related to the ALF-X System and the SurgiBot System, strategic acquisitions of assets or technologies, and for working capital purposes. " In a separate announcement on Wednesday, Transenterix announced that it has successfully completed its response to the U.S. Food and Drug Administration (FDA) related to its pending 510(k) application submitted for clearance of its SurgiBot System.

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