Wearable Devices Ltd. (NASDAQ:WLDS) shares are down during Wednesday’s premarket session after the company unveiled a warrant inducement deal that could raise about $5 million.

Warrant Inducement Transaction

Wearable Devices disclosed a warrant inducement agreement with an existing institutional investor.

The deal includes the immediate exercise of warrants to purchase up to 2,904,499 ordinary shares at $1.73 per share.

The transaction is expected to generate about $5.0 million in gross proceeds, before fees and expenses.

The company plans to use the net proceeds for working capital and general corporate purposes.

Technical Analysis

Wearable Devices is currently trading 82.90% lower over the past 12 months, indicating a significant downtrend. The stock is trading 17.8% below its 20-day simple moving average (SMA) and 37.7% below its 50-day SMA, suggesting bearish momentum in the short to intermediate term.

The relative strength index (RSI) is at 34.72, indicating neutral momentum. This level suggests that the stock is neither overbought nor oversold, but it may be approaching oversold conditions if the downward trend continues.

  • Key Resistance: $1.40 — This level has previously acted as a barrier for upward movements.
  • Key Support: $1.10 — A critical level that could indicate further downside if breached.

Wearable Devices engages in the development of a non-invasive neural input interface for controlling digital devices using subtle touchless finger movements. 

WLDS Stock Price Activity: Wearable Devices shares were down 0.85% at $1.17 during premarket trading on Wednesday, according to Benzinga Pro data.

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