Filed Pursuant to Rule 424(b)(3)
Registration
No. 333-272341
PROSPECTUS
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Motus
GI Holdings, Inc.
8,491,125
Shares
Common
Stock
The
selling stockholders named in this prospectus may use this prospectus to offer and resell from time to time up to 8,491,125 shares of
our common stock, par value $0.0001 per share (“Common Stock”), which are comprised of (i) 525,000 shares (the
“Shares”) of our Common Stock issued in a private placement on May 19, 2023 (the “Private Placement”),
pursuant to a certain Securities Purchase Agreement by and between us and a certain institutional and accredited investor (the “Purchaser”),
dated as of May 17, 2023 (the “Securities Purchase Agreement”), (ii) 3,617,012 shares of Common Stock (the
“Pre-Funded Warrant Shares”) issuable upon the exercise of the pre-funded warrants (the “Pre-Funded
Warrants”) issued in the Private Placement, pursuant to the Securities Purchase Agreement, (iii) 4,142,012 shares of Common
Stock (the “Common Warrant Shares” and, together with the Pre-Funded Warrant Shares, the “Purchaser
Warrant Shares”) issuable upon the exercise of the common warrants (the “Common Warrants”) issued
in the Private Placement, pursuant to the Securities Purchase Agreement, and (iv) 207,101 shares of Common Stock (the “Placement
Agent Warrant Shares”) issuable upon the exercise of the placement agent warrants (the “Placement Agent Warrants”
and, together with the Pre-Funded Warrants and the Common Warrants, the “Warrants”) we issued to certain selling
stockholders as the designees of H.C. Wainwright & Co., LLC (“Wainwright”) on May 19, 2023, as part of
Wainwright’s compensation for serving as our exclusive placement agent in connection with the Private Placement.
We
refer to the Common Warrants, the Pre-Funded Warrants and the Placement Agent Warrants collectively as the “Warrants.”
The
Shares, Pre-Funded Warrants and Common Warrants were issued to the Purchaser in reliance upon the exemption from the registration requirements
in Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”) and Regulation D (Rule
506) thereunder. The Purchaser represented that it was an “accredited investor” (as defined by Rule 501 under the Securities
Act). We are registering the offer and resale of the Shares, Pre-Funded Warrant Shares and the Common Warrant Shares to satisfy
a provision in a certain registration rights agreement, dated May 17, 2023 (the “Registration Rights Agreement”),
pursuant to which we agreed to register the resale of the Shares, the Pre-Funded Warrant Shares and the Common Warrant Shares.
In
addition, the Placement Agent Warrants were issued to Wainwright’s designees in reliance upon the exemption from the registration
requirements in Section 4(a)(2) of the Securities Act and Regulation D thereunder.
We
will not receive any of the proceeds from the sale of our Common Stock by the selling stockholders. However, we will receive proceeds
from the exercise of the Warrants if the Warrants are exercised for cash. We intend to use those proceeds, if any, for general corporate
purposes.
Any
shares of Common Stock subject to resale hereunder will have been issued by us and acquired by the selling stockholders prior to any
resale of such shares pursuant to this prospectus.
The
selling stockholders named in this prospectus, or their donees, pledgees, transferees or other successors-in-interest, may offer or resell
the shares from time to time through public or private transactions at prevailing market prices, at prices related to prevailing market
prices or at privately negotiated prices. The selling stockholders will bear all commissions and discounts, if any, attributable to the
sale of shares of Common Stock offered hereby, and all selling and other expenses incurred by the selling stockholders. We will bear
all costs, expenses and fees in connection with the registration of the shares of Common Stock offered hereby. For additional information
on the methods of sale that may be used by the selling stockholders, see “Plan of Distribution” beginning on page 7 of this
prospectus.
Our
Common Stock is listed on the Nasdaq Capital Market under the symbol “MOTS.” On May 26, 2023, the last reported sale price
of our Common Stock as reported on the Nasdaq Capital Market was $0.73 per share.
We
are an “emerging growth company” as that term is used in the Jumpstart Our Business Startups Act of 2012, and, as such, we
have elected to take advantage of certain reduced public company reporting requirements for this prospectus and future filings.
Investing
in our securities involves a high degree of risk. These risks are discussed in this prospectus under “Risk Factors” beginning
on page 3 and in the documents incorporated by reference into this prospectus.
Neither
the Securities and Exchange Commission (the “SEC”) nor any state securities commission has approved or disapproved of these
securities or passed upon the adequacy or accuracy of this prospectus. Any representation to the contrary is a criminal offense.
The
date of this prospectus is June 9, 2023
TABLE
OF CONTENTS
ABOUT
THIS PROSPECTUS
This
prospectus is part of a registration statement on Form S-3 that we filed with the SEC using a “shelf” registration process.
The selling stockholders named in this prospectus may resell, from time to time, in one or more offerings, the shares of Common Stock
offered by this prospectus. Information about the selling stockholders may change over time. When the selling stockholders sells shares
of Common Stock under this prospectus, we will, if necessary and required by law, provide a prospectus supplement that will contain specific
information about the terms of that offering. Any prospectus supplement may also add to, update, modify or replace information contained
in this prospectus. If a prospectus supplement is provided and the description of the offering in the prospectus supplement varies from
the information in this prospectus, you should rely on the information in the prospectus supplement. You should carefully read this prospectus
and the accompanying prospectus supplement, if any, along with all of the information incorporated by reference herein and therein, before
making an investment decision.
You
should rely only on the information contained or incorporated by reference in this prospectus or any applicable prospectus supplement.
We have not, and the selling stockholders have not, authorized any other person to provide you with different or additional information.
If anyone provides you with different or additional information, you should not rely on it. This prospectus is not an offer to sell,
nor are the selling stockholders seeking an offer to buy, the shares offered by this prospectus in any jurisdiction where the offer or
sale is not permitted. No offers or sales of any of the shares of Common Stock are to be made in any jurisdiction in which such an offer
or sale is not permitted. You should assume that the information contained in this prospectus or in any applicable prospectus supplement
is accurate only as of the date on the front cover thereof or the date of the document incorporated by reference, regardless of the time
of delivery of this prospectus or any applicable prospectus supplement or any sales of the shares of Common Stock offered hereby or thereby.
You
should read the entire prospectus and any prospectus supplement and any related issuer free writing prospectus, as well as the documents
incorporated by reference into this prospectus or any prospectus supplement or any related issuer free writing prospectus, before making
an investment decision. Neither the delivery of this prospectus or any prospectus supplement or any issuer free writing prospectus nor
any sale made hereunder shall under any circumstances imply that the information contained or incorporated by reference herein or in
any prospectus supplement or issuer free writing prospectus is correct as of any date subsequent to the date hereof or of such prospectus
supplement or issuer free writing prospectus, as applicable. You should assume that the information appearing in this prospectus, any
prospectus supplement or any document incorporated by reference is accurate only as of the date of the applicable documents, regardless
of the time of delivery of this prospectus or any sale of securities. Our business, financial condition, results of operations and prospects
may have changed since that date.
PROSPECTUS
SUMMARY
This
summary provides an overview of selected information contained elsewhere or incorporated by reference in this prospectus and does not
contain all of the information you should consider before investing in our securities. You should carefully read the prospectus, the
information incorporated by reference and the registration statement of which this prospectus is a part in their entirety before investing
in our securities, including the information discussed under “Risk Factors” in this prospectus and the documents incorporated
by reference and our financial statements and related notes that are incorporated by reference in this prospectus. As used in this prospectus,
unless the context otherwise indicates, the terms “we,” “our,” “us,” or “the Company”
refer to Motus GI Holdings, Inc., a Delaware corporation, and its subsidiaries taken as a whole.
Overview
We
have developed the Pure-Vu System, a medical device that has been cleared by the U.S. Food and Drug Administration (the “FDA”)
to help facilitate the cleansing of a poorly prepared gastrointestinal tract during colonoscopy and to help facilitate upper gastrointestinal
(“GI”) endoscopy procedures. The Pure-Vu System is also CE marked in the European Economic Area (EEA) for use in colonoscopy.
The Pure-Vu System integrates with standard and slim colonoscopes, as well as gastroscopes, to improve visualization during colonoscopy
and upper GI procedures while preserving established procedural workflow and techniques. Through irrigation and evacuation of debris,
the Pure-Vu System is designed to provide better-quality exams. Challenges exist for inpatient colonoscopy and endoscopy, particularly
for patients who are elderly, with comorbidities, or active bleeds, where the ability to visualize, diagnose and treat is often compromised
due to debris, including fecal matter, blood, or blood clots. We believe this is especially true in high acuity patients, like GI bleeding
where the existence of blood and blood clots can impair a physician’s view and removing them can be critical in allowing a physician
the ability to identify and treat the source of bleeding on a timely basis. We believe use of the Pure-Vu System may lead to positive
outcomes and lower costs for hospitals by safely and quickly improving visualization of the colon and upper GI tract, potentially enabling
effective diagnosis and treatment without delay. In multiple clinical studies to date, involving the treatment of challenging inpatient
and outpatient cases, the Pure-Vu System has consistently helped achieve adequate bowel cleanliness rates greater than 95% following
a reduced prep regimen. We also believe that the technology may be useful in the future as a tool to help reduce user dependency on conventional
pre-procedural bowel prep regimens. Based on our review and analysis of 2019 market data and 2021 projections for the U.S. and Europe,
as obtained from iData Research Inc., we believe that during 2022 approximately 1.5 million inpatient colonoscopy procedures were performed
in the U.S. and approximately 4.8 million worldwide. Upper GI bleeds occurred in the U.S. at a rate of approximately 400,000 cases per
year in 2019, according to iData Research Inc. The Pure-Vu System has been assigned an ICD-10 code in the US. The system does not currently
have unique codes with any private or governmental third-party payors in any other country or for any other use; however, we may pursue
reimbursement activities in the future, particularly in the outpatient colonoscopy market. We received 510(k) clearance in February 2022
from the FDA for our Pure-Vu EVS System and have commenced commercialization of this product.
Implications
of Being an Emerging Growth Company
We
are an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”),
and, for as long as we continue to be an “emerging growth company,” we may choose to take advantage of exemptions from various
reporting requirements applicable to other public companies but not to “emerging growth companies,” including, but not limited
to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, as amended,
(the “Sarbanes-Oxley Act”), reduced disclosure obligations regarding executive compensation in our periodic reports and proxy
statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval
of any golden parachute payments not previously approved. We could be an “emerging growth company” for up to five years from
the date of our initial public offering in February 2018, which would be at the end of the current fiscal year, ending December 31, 2023,
or until the earliest of (i) the last day of the first fiscal year in which our annual gross revenues exceed $1.07 billion, (ii) the
date that we become a “large accelerated filer” as defined in Rule 12b-2 under the Exchange Act, which would occur if the
market value of our Common Stock that is held by non-affiliates exceeds $700 million as of the last business day of our most recently
completed second fiscal quarter, or (iii) the date on which we have issued more than $1 billion in non-convertible debt during the preceding
three-year period. We intend to take advantage of these reporting exemptions described above until we are no longer an “emerging
growth company.” Under the JOBS Act, “emerging growth companies” can also delay adopting new or revised accounting
standards until such time as those standards apply to private companies. We have irrevocably elected not to avail ourselves of this exemption
from new or revised accounting standards and, therefore, we will be subject to the same new or revised accounting standards as other
public companies that are not “emerging growth companies.”
Corporate
Information
We
are a Delaware corporation formed in September 2016 under the name Eight-Ten Merger Corp. In November 2016, we changed our name to Motus
GI Holdings, Inc. We are the parent company of Motus GI Medical Technologies Ltd., an Israeli corporation, and Motus GI, LLC a Delaware
limited liability company.
Our
principal executive offices are located at 1301 East Broward Boulevard, 3rd Floor, Ft. Lauderdale, FL 33301. Our phone number is (954)
541-8000 and our web address is www.motusgi.com. Our website and the information contained on, or that can be accessed through, our website
will not be deemed to be incorporated by reference in, and are not considered part of, this prospectus. You should not rely on our website
or any such information in making your decision whether to purchase our securities.
the
offering
Common
Stock offered by the selling stockholders |
|
Up
to 8,491,125 shares of Common Stock, which are comprised of (i) 525,000 Shares, (ii) 3,617,012
shares of Common Stock issuable upon the exercise of the Pre-Funded Warrants, (iii) 4,142,012
shares of Common Stock issuable upon the exercise of the Common Warrants and (iv) 207,101
shares of Common Stock issuable upon the exercise of the Placement Agent Warrants. |
|
|
|
Selling
stockholders |
|
All
of the shares of Common Stock are being offered by the selling stockholders named herein.
See “Selling Stockholders” on page 4 of this prospectus for more information
on the selling stockholders. |
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|
|
Use
of Proceeds |
|
We
will not receive any proceeds from the sale of the shares in this offering. However, we will
receive proceeds from the exercise of the Warrants if the Warrants are exercised for cash.
We intend to use those proceeds, if any, for general corporate purposes. See “Use of
Proceeds” beginning on page 4 of this prospectus for additional information. |
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|
|
Registration
Rights |
|
Under
the terms of the Registration Rights Agreement, we have agreed to file this registration
statement with respect to the registration of the resale by the selling stockholders of the
Shares and the Purchaser Warrant Shares by June 1, 2023. We have agreed to cause such registration
statement to become effective under the Securities Act by the 45th day following
the date of the Registration Rights Agreement (or by the 75th day following the
date of the Registration Rights Agreement if there is a full review of the registration statement
by the SEC). In addition, we agreed that, upon the registration statement being declared
effective, we will use our best efforts to maintain the effectiveness of the registration
statement until the earlier of (i) the selling stockholders have sold all of the Shares and
Purchaser Warrant Shares or (ii) such shares may be resold by the selling stockholders pursuant
to Rule 144 of the Securities Act, without the requirement for us to be in compliance with
the current public information required under such rule and without volume or manner-of-sale
restriction.
The
selling stockholders do not have any registration rights in connection with the Placement Agent Warrants.
See
“Selling Stockholders” on page 4 of this prospectus for additional information. |
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|
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Plan
of Distribution |
|
The
selling stockholders named in this prospectus, or their pledgees, donees, transferees, distributees,
beneficiaries or other successors-in-interest, may offer or sell the shares of Common Stock
from time to time through public or private transactions at prevailing market prices, at
prices related to prevailing market prices or at privately negotiated prices. The selling
stockholders may also resell the shares of Common Stock to or through underwriters, broker-dealers
or agents, who may receive compensation in the form of discounts, concessions or commissions.
See
“Plan of Distribution” beginning on page 7 of this prospectus for additional information on the methods of sale that
may be used by the selling stockholders. |
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Risk
Factors |
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Investing
in our Common Stock involves a high degree of risk. You should carefully read and consider
the information beginning on page 3 of this prospectus set forth under the heading “Risk
Factors” and all other information set forth in this prospectus, and the documents
incorporated herein and therein by reference before deciding to invest in our Common Stock. |
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|
|
Nasdaq
Capital Market symbol |
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“MOTS” |
RISK
FACTORS
An
investment in our securities involves certain risks. Before investing in our securities, you should carefully consider the risks, uncertainties
and assumptions discussed under the heading “Risk Factors” included in our most recent Annual Report on Form 10-K, and any
updates in our Quarterly Reports on Form 10-Q or Current Reports on Form 8-K, together with all of the other information appearing in
this prospectus or incorporated by reference into this prospectus and which may be amended, supplemented or superseded from time to time
by other reports we file with the SEC in the future. The risks so described are not the only risks facing our company. Additional risks
not presently known to us or that we currently deem immaterial may also impair our business operations. Any of these risks could materially
and adversely affect our business, financial condition, results of operations and cash flows and could result in a loss of all or part
of your investment. In any case, the value of the securities offered by means of this prospectus could decline due to any of these risks,
and you may lose all or part of your investment. Please also read carefully the section below entitled “Special Note Regarding
Forward-Looking Statements.”
SPECIAL
NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain
information set forth in this prospectus or incorporated by reference herein may contain “forward-looking statements” within
the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, that are intended to be covered by the “safe
harbor” created by those sections. Forward-looking statements, which are based on certain assumptions and describe our future plans,
strategies and expectations, can generally be identified by the use of forward-looking terms such as “believe,” “expect,”
“may,” “will,” “should,” “would,” “could,” “seek,” “intend,”
“plan,” “goal,” “project,” “estimate,” “anticipate,” “strategy”,
“future”, “likely” or other comparable terms and references to future periods. All statements other than statements
of historical facts included in this prospectus and the documents incorporated by reference regarding our strategies, prospects, financial
condition, operations, costs, plans and objectives are forward-looking statements. Examples of forward-looking statements include, among
others, statements we make regarding expectations for revenues, cash flows and financial performance, the anticipated results of our
development efforts and the timing for receipt of required regulatory approvals and product launches.
Forward-looking
statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations
and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy
and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks
and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial
condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these
forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those
indicated in the forward-looking statements include, among others, the following:
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● |
our
limited operating history and need for additional capital and need for additional capital; |
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our
ability to execute our strategic restructuring program aimed at capital preservation, reduction in cash expenditures and reduction
of our workforce; |
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our
ability to enter into and consummate strategic alternatives, including any acquisition, merger, reverse merger, other business combination,
sale of assets, licensing and other strategic transactions; |
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● |
our
history of operating losses in each year since inception and expectation that we will continue to incur operating losses for the
foreseeable future; |
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● |
our
current and future capital requirements to support our development and commercialization efforts for the Pure-Vu System and our ability
to satisfy our capital needs; |
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● |
our
ability to remain compliant with the requirements of The Nasdaq Capital Market for continued listing; |
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our
dependence on the Pure-Vu System, our sole product; |
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● |
our
ability to commercialize the Pure-Vu System; |
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● |
our
Pure-Vu System and the procedure to cleanse the colon in preparation for colonoscopy are not currently separately reimbursable through
private or governmental third-party payors; |
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● |
our
ability to obtain approval or certification from regulatory agents or other competent entities in different jurisdictions for the
Pure-Vu System; |
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our
dependence on third-parties to manufacture the Pure-Vu System; |
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our
ability to maintain or protect the validity of our patents and other intellectual property; |
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our
ability to retain key executives and medical and science personnel; |
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our
ability to internally develop new inventions and intellectual property; |
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interpretations
of current laws and the passages of future laws; |
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acceptance
of our business model by investors; |
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the
accuracy of our estimates regarding expenses and capital requirements; |
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our
ability to adequately support growth; |
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our
ability to predict the financial impact of inflation on costs such as labor, freight and materials; and |
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our
ability to project in the short term the hospital medical device environment considering the global pandemic and strains on hospital
systems; and |
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other
risks and uncertainties discussed in the Company’s annual report on Form 10-K for the year ended December 31, 2022,
as updated in our Form 10-Q for the quarter ended March 31, 2023 and other reports, as applicable, the Company files with the Securities
and Exchange Commission, which are incorporated by reference in this prospectus and the accompanying prospectus. |
Any
forward-looking statement made by us in this prospectus is based only on information currently available to us and speaks only as of
the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that
may be made from time to time, whether as a result of new information, future developments or otherwise. We anticipate that subsequent
events and developments will cause our views to change. You should read this prospectus and the documents referenced herein or therein
and filed as exhibits to the registration statement, of which this prospectus is a part, completely and with the understanding that our
actual future results may be materially different from what we expect. Our forward-looking statements do not reflect the potential impact
of any future acquisitions, merger, dispositions, joint ventures or investments we may undertake. We qualify all of our forward-looking
statements by these cautionary statements.
USE
OF PROCEEDS
All
shares of our Common Stock offered by this prospectus are being registered for the accounts of the selling stockholders, and we will
not receive any proceeds from the sale of these shares of Common Stock. However, we will receive proceeds from the exercise of the Warrants
if the Warrants are exercised for cash. We intend to use those proceeds, if any, for general corporate purposes.
Selling
stockholders
Up
to 8,491,125 shares of our Common Stock are currently being offered by the selling stockholders.
Private
Placement
On
May 17, 2023, we entered into the Securities Purchase Agreement with the Purchaser, pursuant to which we issued and sold to the Purchaser
in the Private Placement an aggregate of (i) 525,000 shares of Common Stock, (ii) Pre-Funded Warrants to purchase up to an aggregate
of 3,617,012 shares of Common Stock and (iii) Common Warrants to purchase up to an aggregate of 4,142,012 shares of Common Stock, in
each case, in accordance with the terms and conditions of the Securities Purchase Agreement, at a combined offering price of $0.845 per
Share and accompanying Common Warrant to purchase one share of Common Stock and $0.8449 per Pre-Funded Warrant to purchase one share
of Common Stock and accompanying Common Warrant to purchase one share of Common Stock, for gross proceeds of approximately $3.5 million.
The Private Placement closed on May 19, 2023.
The
Common Warrants have an exercise price of $0.72 per share. The Common Warrants are immediately exercisable and may be exercised at any
time after their original issuance until November 20, 2028. The Pre-Funded Warrants have an exercise price of $0.0001 per share. The
Pre-Funded Warrants are immediately exercisable and may be exercised at any time until the Pre-Funded Warrants are exercised in full.
A holder of Common Warrants or Pre-Funded Warrants may not exercise any portion of such holder’s Common Warrants or Pre-Funded
Warrants to the extent that the holder, together with its affiliates, would beneficially own more than 4.99% (or, at the election of
the holder, 9.99%) of the Company’s outstanding shares of Common Stock immediately after exercise, except that upon at least 61
days’ prior notice from the holder to the Company, the holder may increase the beneficial ownership limitation to up to 9.99% of
the number of shares of Common Stock outstanding immediately after giving effect to the exercise. If at any time of exercise, there is
no effective registration statement under the Securities Act registering the resale of the Common Warrant Shares by the selling shareholders,
the Common Warrants may also be exercised, in whole or in part, by means of a cashless exercise according to a formula set forth in the
Common Warrants. The Pre-Funded Warrants may also be exercised, in whole or in part, by means of a cashless exercise according to a formula
set forth in the Pre-Funded Warrants.
In
connection with the Private Placement, we entered into the Registration Rights Agreement with the Purchaser, pursuant to which, among
other things, we agreed to prepare and file with the SEC a registration statement on Form S-3 to register for resale the Shares and the
shares of Common Stock issuable upon the exercise of the Common Warrants and Pre-Funded Warrants by June 1, 2023. We have also agreed
to cause such registration statement to become effective under the Securities Act by the 45th day following the date of the Registration
Rights Agreement (or by the 75th day following the date of the Registration Rights Agreement if there is a full review of the registration
statement by the SEC). In addition, we agreed that, upon the registration statement being declared effective, we will use best efforts
to keep such registration statement effective until the earlier of (i) the selling stockholders have sold all of the Shares and the Purchaser
Warrant Shares or (ii) such shares may be resold by the selling stockholders pursuant to Rule 144 of the Securities Act without any public
information requirements or volume or manner of sale limitations.
Pursuant
to the Registration Rights Agreement, we are registering the Shares and the Purchaser Warrant Shares in order to permit the selling stockholders
to offer such shares for resale from time to time pursuant to this prospectus. The selling stockholders may also sell, transfer or otherwise
dispose of all or a portion of their shares in transactions exempt from the registration requirements of the Securities Act, or pursuant
to another effective registration statement covering those shares.
Wainwright
acted as the exclusive placement agent for the Private Placement. Pursuant to a certain engagement letter, dated May 5, 2023, as amended,
we issued to the designees of Wainwright Placement Agent Warrants to purchase up to 207,101 shares of Common Stock, equal to 5.0% of
the aggregate number of Shares and shares of Common Stock underlying the Pre-Funded Warrants placed in the Private Placement. The Placement
Agent Warrants are exercisable immediately, have an exercise price of $1.0563 per share (equal to 125% of the offering price per Share
and accompanying Common Warrant), and terminate on November 20, 2028. A holder of a Placement Agent Warrant may not exercise any portion
of such holder’s Placement Agent Warrants to the extent that the holder, together with its affiliates, would beneficially own more
than 4.99% (or, at the election of the holder, 9.99%) of our outstanding shares of Common Stock immediately after exercise, except that
upon at least 61 days’ prior notice from the holder to us, the holder may increase the beneficial ownership limitation to up to
9.99% of the number of shares of Common Stock outstanding immediately after giving effect to the exercise. If at any time of exercise,
there is no effective registration statement under the Securities Act registering the resale of the Placement Agent Warrant Shares by
the selling shareholders, then the Placement Agent Warrants may also be exercised, in whole or in part, by means of a cashless exercise
according to a formula set forth in the Placement Agent Warrants.
The
selling stockholders do not have any registration rights in connection with the Placement Agent Warrants.
The
Shares, the Pre-Funded Warrants, the Pre-Funded Warrant Shares, the Common Warrants, the Common Warrant Shares, the Placement Agent Warrants
and the Placement Agent Warrant Shares have not been registered under the Securities Act and were offered pursuant to the exemption from
registration provided in Section 4(a)(2) under the Securities Act, and Rule 506(b) promulgated thereunder.
Relationship
with the Selling Stockholders
Except
with respect to the following, none of the selling stockholders has, or within the past three years has had, any position, office or
other material relationship with us.
The
selling stockholders participated in the Private Placement.
Affiliates
of Wainwright
Each
of Michael Vasinkevich, Noam Rubinstein, Craig Schwabe and Charles Worthman are affiliated with Wainwright, a registered broker-dealer,
which served as our placement agent for the Private Placement, for which it received cash and warrant compensation. In connection with
the Private Placement, each of Michael Vasinkevich, Noam Rubinstein, Craig Schwabe and Charles Worthman, as a designee of Wainwright,
received the Placement Agent Warrants.
Information
About Selling Stockholder Offering
The
shares of Common Stock being offered by the selling stockholders are those previously issued to the selling stockholders, and those issuable
to the selling stockholders, upon the exercise of the Warrants. For additional information regarding the issuances of those shares of
Common Stock, see “—Private Placement” above. We are registering the shares of Common Stock in order to permit the
selling stockholders to offer the shares for resale from time to time.
The
table below lists the selling stockholders and other information regarding the ownership of the shares of Common Stock by each of the
selling stockholders. The second column lists the number of shares of Common Stock owned by each selling stockholder, based on its ownership
of the shares of Common Stock and securities convertible into shares of Common Stock, as of May 19, 2023, assuming exercise of the securities
convertible into shares of Common Stock held by the selling stockholders on that date, without regard to any limitations on exercises.
The
third column lists the shares of Common Stock being offered by this prospectus by the selling stockholders.
In
accordance with the terms of the Registration Rights Agreement, this prospectus generally covers the resale of the sum of (i) the Shares
issued to the selling stockholders in the “—Private Placement” described above and (ii) the maximum number of Purchaser
Warrant Shares. In addition, this prospectus covers the maximum number of the Placement Agent Warrant Shares. The table below assumes
that the outstanding Warrants were exercised in full as of the trading day immediately preceding the date this registration statement
was initially filed with the SEC, each as of the trading day immediately preceding the applicable date of determination and all subject
to adjustment as provided in the Registration Rights Agreement, without regard to any limitations on the exercise of the Warrants. The
fourth column assumes the sale of all of the shares offered by the selling stockholders pursuant to this prospectus. The fifth column
lists the percentages of shares of Common Stock owned by the selling stockholders after this offering, taking account of any limitations
on exercise set forth in the applicable convertible securities.
Under
the terms of the Warrants, a selling stockholder may not exercise the Warrants to the extent such exercise would cause such selling stockholder,
together with its affiliates and attribution parties, to beneficially own a number of shares of Common Stock which would exceed 4.99%
or 9.99%, as applicable, of our then outstanding Common Stock following such exercise, excluding for purposes of such determination shares
of Common Stock issuable upon the exercise of the Warrants, which have not been exercised. The number of shares in the second column
does not reflect this limitation. The selling stockholders may sell all, some or none of their shares in this offering. See “Plan
of Distribution.”
Name
of Selling stockholder | |
Number
of shares
of Common Stock Owned Prior
to Offering | | |
Maximum Number
of shares
of Common Stock
to be Sold Pursuant
to this
Prospectus | | |
Number
of shares
of Common Stock Owned After Offering | | |
Percentage of
Common Stock Owned After Offering(1) | |
Armistice Capital, LLC (2) | |
| 8,584,021 | (2) | |
| 8,284,024 | | |
| 299,997 | | |
| 2.2 | % |
Michael Vasinkevich(3) | |
| 132,804 | | |
| 132,804 | | |
| - | | |
| * | |
Noam Rubinstein(3) | |
| 65,236 | | |
| 65,236 | | |
| - | | |
| * | |
Craig Schwabe(3) | |
| 6,990 | | |
| 6,990 | | |
| - | | |
| * | |
Charles Worthman(3) | |
| 2,071 | | |
| 2,071 | | |
| - | | |
| * | |
|
(1) |
Based
on 4,778,873 shares of Common Stock outstanding as of May 17, 2023. “*” denotes less than 1%. |
|
(2) |
Includes
3,617,012 shares of Common Stock issuable upon the exercise of the Pre-Funded Warrants, 4,142,012 shares of Common Stock issuable
upon the exercise of the Common Warrants and 299,997 shares of Common Stock issuable upon the exercise of other warrants. The securities
are directly held by Armistice Capital Master Fund Ltd., a Cayman Islands exempted company (the “Master Fund”), and may
be deemed to be beneficially owned by: (i) Armistice Capital, LLC (“Armistice Capital”), as the investment manager of
the Master Fund; and (ii) Steven Boyd, as the Managing Member of Armistice Capital. The warrants are subject to a beneficial
ownership limitation of 4.99% or 9.99%, which such limitation restricts the Selling Stockholder from exercising that portion of the
warrants that would result in the Selling Stockholder and its affiliates owning, after exercise, a number of shares of Common Stock
in excess of the beneficial ownership limitation. The amounts and percentages in the table do not give effect to the beneficial ownership
limitations. The address of the Master Fund is c/o Armistice Capital, LLC, 510 Madison Ave, 7th Floor, New York, NY 10022. |
|
(3) |
Each
of the Selling Stockholders is associated with Wainwright, a registered broker dealer with a registered address at c/o H.C. Wainwright
& Co. 430 Park Ave, 3rd Floor, New York, NY 10022, and has sole voting and dispositive power over the securities held. The number
of shares beneficially owned prior to this offering consist of shares of Common Stock issuable upon exercise of Placement Agent Warrants,
which were received as compensation for the Private Placement. The Selling Stockholder purchased or received the securities in the
ordinary course of business and, at the time of purchase of the securities that are registered for resale, the Selling Stockholders
had no agreements or understanding, directly or indirectly with any person to distribute securities. |
PLAN
OF DISTRIBUTION
Each
selling stockholder of the shares of Common Stock and any of their pledgees, assignees and successors-in-interest may, from time to time,
sell any or all of their shares of Common Stock covered hereby on the Nasdaq Capital Market or any other stock exchange, market or trading
facility on which the shares of Common Stock are traded or in private transactions. These sales may be at fixed or negotiated prices.
A selling stockholder may use any one or more of the following methods when selling securities:
|
● |
ordinary
brokerage transactions and transactions in which the broker-dealer solicits purchasers; |
|
● |
block
trades in which the broker-dealer will attempt to sell the securities as agent but may position and resell a portion of the block
as principal to facilitate the transaction; |
|
● |
purchases
by a broker-dealer as principal and resale by the broker-dealer for its account; |
|
● |
an
exchange distribution in accordance with the rules of the applicable exchange; |
|
● |
privately
negotiated transactions; |
|
● |
settlement
of short sales; |
|
● |
in
transactions through broker-dealers that agree with the selling stockholders to sell a specified number of such shares of Common
Stock at a stipulated price per security; |
|
● |
through
the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise; |
|
● |
a
combination of any such methods of sale; or |
|
● |
any
other method permitted pursuant to applicable law. |
The
selling stockholders may also sell shares of Common Stock under Rule 144 or any other exemption from registration under the Securities
Act, if available, rather than under this prospectus.
Broker-dealers
engaged by the selling stockholders may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive commissions
or discounts from the selling stockholders (or, if any broker-dealer acts as agent for the purchaser of securities, from the purchaser)
in amounts to be negotiated, but, except as set forth in a supplement to this prospectus, in the case of an agency transaction not in
excess of a customary brokerage commission in compliance with FINRA Rule 2440; and in the case of a principal transaction a markup or
markdown in compliance with FINRA IM-2440.
In
connection with the sale of shares of Common Stock or interests therein, the selling stockholders may enter into hedging transactions
with broker-dealers or other financial institutions, which may in turn engage in short sales of the shares of Common Stock in the course
of hedging the positions they assume. The selling stockholders may also sell shares of Common Stock short and deliver these securities
to close out their short positions, or loan or pledge the securities to broker-dealers that in turn may sell these shares of Common Stock.
The selling stockholders may also enter into option or other transactions with broker-dealers or other financial institutions or create
one or more derivative securities which require the delivery to such broker-dealer or other financial institution of shares of Common
Stock offered by this prospectus, which shares of Common Stock such broker-dealer or other financial institution may resell pursuant
to this prospectus (as supplemented or amended to reflect such transaction).
The
selling stockholders and any broker-dealers or agents that are involved in selling the shares of Common Stock may be deemed to be “underwriters”
within the meaning of the Securities Act in connection with such sales. In such event, any commissions received by such broker-dealers
or agents and any profit on the resale of the shares of Common Stock purchased by them may be deemed to be underwriting commissions or
discounts under the Securities Act. Each selling stockholder has informed us that it does not have any written or oral agreement or understanding,
directly or indirectly, with any person to distribute the securities.
We
are required to pay certain fees and expenses incurred by us incident to the registration of the shares of Common Stock. We have agreed
to indemnify the selling stockholders against certain losses, claims, damages and liabilities, including liabilities under the Securities
Act.
We
agreed to keep this prospectus effective until the earlier of (i) the date on which the shares of Common Stock may be resold by the selling
stockholders without registration and without regard to any volume or manner-of-sale limitations by reason of Rule 144, without the requirement
for us to be in compliance with the current public information under Rule 144 under the Securities Act or any other rule of similar effect
or (ii) all of the shares of Common Stock have been sold pursuant to this prospectus or Rule 144 under the Securities Act or any other
rule of similar effect. The resale shares will be sold only through registered or licensed brokers or dealers if required under applicable
state securities laws. In addition, in certain states, the resale shares covered hereby may not be sold unless they have been registered
or qualified for sale in the applicable state or an exemption from the registration or qualification requirement is available and is
complied with.
Under
applicable rules and regulations under the Exchange Act, any person engaged in the distribution of the resale securities may not simultaneously
engage in market making activities with respect to the Common Stock for the applicable restricted period, as defined in Regulation M,
prior to the commencement of the distribution. In addition, the selling stockholders will be subject to applicable provisions of the
Exchange Act and the rules and regulations thereunder, including Regulation M, which may limit the timing of purchases and sales of the
Common Stock by the selling stockholders or any other person. We will make copies of this prospectus available to the selling stockholders
and have informed them of the need to deliver a copy of this prospectus to each purchaser at or prior to the time of the sale (including
by compliance with Rule 172 under the Securities Act).
LEGAL
MATTERS
The
validity of the securities offered by this prospectus will be passed upon by Lowenstein Sandler LLP, New York, New York.
EXPERTS
The
consolidated balance sheets of Motus GI Holdings, Inc. and Subsidiaries (the “Company”) as of December 31, 2022 and 2021,
and the related consolidated statements of comprehensive loss, changes in shareholders’ equity, and cash flows for each of the
years then ended, have been audited by EisnerAmper LLP, independent registered public accounting firm, as stated in their report which
is incorporated herein by reference, which report includes an explanatory paragraph about the existence of substantial doubt concerning
the Company's ability to continue as a going concern. Such financial statements have been incorporated herein by reference in reliance
on the report of such firm given upon their authority as experts in accounting and auditing.
DISCLOSURE
OF COMMISSION POSITION
ON
INDEMNIFICATION FOR SECURITIES ACT LIABILITIES
Section
145 of the DGCL provides that we may indemnify any person who was or is a party or is threatened to be made a party to any threatened,
pending or completed action, suit or proceeding, whether civil, criminal or investigative (other than an action by us or in our right)
by reason of the fact that he is or was our director, officer, employee or agent, or is or was serving at our request as a director,
officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses (including
attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by him or her in connection
with such action, suit or proceeding if he acted in good faith and in a manner he or she reasonably believed to be in or not opposed
to our best interests, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct
was unlawful. Section 145 further provides that we similarly may indemnify any such person serving in any such capacity who was or is
a party or is threatened to be made a party to any threatened, pending or completed action or suit by is or in our right to procure judgment
in our favor, against expenses actually and reasonably incurred in connection with the defense or settlement of such action or suit if
he or she acted in good faith and in a manner he reasonably believed to be in or not opposed to our best interests and except that no
indemnification shall be made in respect of any claim, issue or matter as to which such person shall have been adjudged to be liable
to us unless and only to the extent that the Delaware Court of Chancery or such other court in which such action or suit was brought
shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, such person
is fairly and reasonably entitled to indemnity for such expenses which the Court of Chancery or such other court shall deem proper.
Our
certificate of incorporation, as amended, limits the liability of our directors to the fullest extent permitted by Delaware law. In addition,
we have entered into indemnification agreements with certain of our directors and officers whereby we have agreed to indemnify those
directors and officers to the fullest extent permitted by law, including indemnification against expenses and liabilities incurred in
legal proceedings to which the director or officer was, or is threatened to be made, a party by reason of the fact that such director
or officer is or was a director, officer, employee or agent of the Company, provided that such director or officer acted in good faith
and in a manner that the director or officer reasonably believed to be in, or not opposed to, the best interests of the Company.
We
have director and officer liability insurance to cover liabilities our directors and officers may incur in connection with their services
to us, including matters arising under the Securities Act. Our certificate of incorporation and bylaws also provide that we will indemnify
our directors and officers who, by reason of the fact that he or she is one of our officers or directors of our company, is involved
in any action, suit or proceeding, whether civil, criminal, administrative or investigative, related to their board role with the company.
Insofar
as indemnification for liabilities arising under the Securities Act may be permitted to our directors, officers and controlling persons
pursuant to the foregoing provisions, or otherwise, we have been advised that in the opinion of the SEC such indemnification is against
public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person
of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person
in connection with the securities being registered, we will, unless in the opinion of our counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by us is against public policy as
expressed in the Securities Act and will be governed by the final adjudication of such issue.
WHERE
YOU CAN FIND MORE INFORMATION
We
are subject to the informational requirements of the Exchange Act, and in accordance therewith file annual, quarterly and current reports,
proxy statements and other information with the SEC. The SEC maintains a website that contains reports, proxy and information statements
and other information regarding registrants that file electronically with the SEC. The address of the SEC’s website is www.sec.gov.
We
make available free of charge on or through our website at www.motusgi.com, our Annual Reports on Form 10-K, Quarterly Reports on Form
10-Q, Current Reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange
Act, as soon as reasonably practicable after we electronically file such material with or otherwise furnish it to the SEC.
We
have filed with the SEC a registration statement under the Securities Act, relating to the offering of these securities. The registration
statement, including the attached exhibits, contains additional relevant information about us and the securities. This prospectus does
not contain all of the information set forth in the registration statement. You can obtain a copy of the registration statement for free
at www.sec.gov. The registration statement and the documents referred to below under “Incorporation of Certain Information
By Reference” are also available on our website, www.motusgi.com.
We
have not incorporated by reference into this prospectus the information on our website, and you should not consider it to be a part of
this prospectus.
INCORPORATION
OF CERTAIN INFORMATION BY REFERENCE
The
SEC allows us to “incorporate by reference” the information we have filed with it, which means that we can disclose important
information to you by referring you to those documents. The information we incorporate by reference is an important part of this prospectus,
and later information that we file with the SEC will automatically update and supersede this information. We incorporate by reference
the documents listed below and any future documents (excluding information furnished pursuant to Items 2.02 and 7.01 of Form 8-K) we
file with the SEC pursuant to Sections l3(a), l3(c), 14 or l5(d) of the Exchange Act, subsequent to the date of this prospectus and prior
to the termination of the offering:
|
● |
our
Annual Report on Form
10-K for the year ended December 31, 2022, filed with the SEC on March 31, 2023; |
|
● |
our
Quarterly Report on Form
10-Q for the quarter ended March 31, 2023, filed with the SEC on May 10, 2023; |
|
● |
our
Current Reports on Form 8-K filed with the SEC on January
10, 2023, March
14, 2023, April
5, 2023, April
13, 2023, May
11, 2023, May
17, 2023, May
22, 2023 and June 5, 2023 (other than any portions thereof deemed furnished and not filed); and |
|
● |
the
description of our common stock contained in our Registration Statement on Form
8-A, filed on February 6, 2018, including any amendments thereto or reports filed for the purposes of updating this description,
including the Description of Securities filed as Exhibit
4.15 to our Annual Report on Form 10-K for the fiscal year ended December 31, 2020. |
All
reports and other documents that we file with the SEC under Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act after the date of
the initial registration statement and prior to effectiveness of the registration statement, and after the date of this prospectus but
before the termination of the offering of the securities hereunder will also be considered to be incorporated by reference into this
prospectus from the date of the filing of these reports and documents, and will supersede the information herein; provided, however,
that all reports, exhibits and other information that we “furnish” to the SEC will not be considered incorporated by reference
into this prospectus. We undertake to provide without charge to each person (including any beneficial owner) who receives a copy of this
prospectus, upon written or oral request, a copy of all of the preceding documents that are incorporated by reference (other than exhibits,
unless the exhibits are specifically incorporated by reference into these documents). You may request a copy of these materials in the
manner set forth under the heading “Additional Information,” above.
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