Motus GI Holdings Looks For Strategic Alternatives

  • Motus GI Holdings Inc MOTS has initiated a process to explore a range of strategic and financing alternatives. As part of this process, the company has engaged Lake Street Capital Markets LLC as an advisor.
  • In addition, the board has approved a strategic restructuring program to preserve capital by initially reducing quarterly operating costs by approximately 35%. 
  • Motus plans to eliminate approximately 45% of its workforce, which is expected to be completed during the first quarter of 2023, to reduce the company's cash burn. 
  • The company expects to incur a non-recurring charge of approximately $1.0 to 2.0 million in Q1 of 2023 related to the restructuring.
  • The planned restructuring is intended to position the company to explore all strategic alternatives, continue supporting its existing customers utilizing Pure-Vu EVS for colonoscopies, and target pipeline opportunities with contracted health systems. 
  • The company reported $13.3 million in cash and cash equivalents as of September 30, 2022, and is anticipated to meet operational needs through the second quarter of 2023.
  • Price Action: MOTS shares are down 6.20% at $0.94 on the last check Tuesday.
  • Photo Via Company
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