Modular Medical, Inc. (NASDAQ: MODD) filed a preliminary prospectus on February 27, 2026 for a $12 million equity and warrant offering that could raise up to 23,571,007 shares of common stock and an equal number of accompanying common warrants, or up to 23,571,007 pre‑funded warrants. The offering is structured to provide the company with additional working capital as it prepares for the commercial launch of its Pivot insulin delivery system.
The company is a pre‑revenue, development‑stage business with no operating income and an accumulated deficit exceeding $100 million. Cash reserves stood at approximately $2.9 million as of December 31, 2025, enough for roughly one month of operations. To shore up liquidity, Modular Medical entered into a $350,000 secured revolving credit facility with its CEO on February 23, 2026 and received a Nasdaq compliance extension to regain minimum bid‑price rule compliance through June 29, 2026. The company also authorized a reverse stock split and increased its authorized shares from 100 million to 250 million to support the offering.
The primary purpose of the capital raise is to strengthen the company’s cash position ahead of the Pivot pump’s expected commercial launch in Q1 2026. The Pivot system is a patch‑pump platform that targets “almost‑pumpers” – adults who have not yet used insulin pumps – and is designed to be user‑friendly and affordable. Modular Medical has received FDA clearance for its patch‑pump technology, has validated its manufacturing line, and has submitted a 510(k) pre‑market application for the Pivot pump, which is pending FDA review. Successful clearance would enable the company to begin commercial sales and generate revenue streams that have been absent to date.
CEO Jeb Besser said, “We are excited to hit this pivotal manufacturing validation on schedule, bringing us closer to delivering our Pivot pump’s game‑changing simplicity to patients underserved by current options. This further derisks our expected path to Q1 2026 commercialization, which is subject to FDA response to our current 510(k) application, and would put us in position to drive market disruption.” The statement underscores the company’s focus on achieving regulatory approval and scaling production to meet anticipated demand.
Modular Medical has previously raised capital through a $15 million offering in February 2022, a $12 million private placement in March 2025, and a $4.68 million public offering in December 2025. The company’s recent Nasdaq compliance extension and reverse split are part of a broader effort to maintain listing status while pursuing growth opportunities. The new offering adds to a series of financing events that reflect the company’s ongoing need for capital to fund product development, regulatory milestones, and commercialization activities.
The announcement highlights the company’s acute liquidity constraints and the critical role of the Pivot pump in its future revenue model. With no current revenue and a substantial cash burn, the $12 million raise is a short‑term measure to keep operations running while the company seeks FDA clearance and prepares for market entry. Investors will view the offering as a necessary step to bridge the gap between development and commercialization, but the company’s financial fragility remains a significant risk factor.
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