Second Sight Medical Inc. (NASDAQ: EYES) stock shows a decline of 19.98% in the current market trading session after EYES announced that they have signed a definitive securities purchase agreement with accredited investors. Second Sight Medical is known for manufacturing and marketing implantable visual prosthetics for blind individuals to give them artificial vision. EYES has also dedicated its services towards developing efficient technologies for sight-impaired individuals.

So what?

Second Sight Medical has signed the agreement with accredited investors with the purpose of a private placement which will possibly earn EYES a net capital of $27.9 million before cutting the expense of the placement offering. At a price of $6.00 per share, Second Sight will sell 4,650,000 shares of common stock. The end date for this private placement is set for March 26, 2021, prior to customary closing terms. The Company expects to use the gross profits from the private placement to provide working capital.

The issue arises because,

The securities offered and sold by Second Sight in the private placement have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or state securities laws and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission (the “SEC”) or an applicable exemption from such registration requirements. Second Sight has agreed to file a registration statement with the SEC covering the resale of the shares of common stock to be issued in the private placement. Any resale of Second Sight’s shares under such resale registration statement will be made only by means of a prospectus.

The securities marketed and issued in the private placement by Second Sight have not been licensed under the Securities Act of 1933, according to the amendment made or state securities laws, but it may not be offered or sold in the Market unless it gets registered with the Securities and Exchange Commission or excluded from registration requirements. As well as today, EYES launched a current report on Form 8-K which is to give an update on its already declared proposed transaction with Pixium vision.