This morning Ekso Bionics Holdings (EKSO) announced it will raise $15 million via a secondary offering of 3,750,000 million shares of common stock at a price of $4.00 per share. This announcement was accompanied by confirmation that the company’s stock has been approved for listing on the Nasdaq Capital Market exchange.

As a result, EKSO’s share price dropped by a third to reflect the dilution to existing shares caused by the secondary offering. Needless to say, for existing shareholders this news is disappointing from a short term perspective. However, from a longer term perspective this is good news for the company, which will use the additional capital to expand its marketing efforts now that exoskeleton technology has gained FDA approval in the U.S., and accelerate development of its products.

Since the share price decline caused by this event is not the result of disappointing operating results we will continue to hold EKSO in our Special Situations portfolio, but will reduce the Buy Limit and Support Level prices to reflect the dilution caused by the secondary offering.