Envoy Medical Stock Plummets 35% Following $16 Million Direct Offering

Envoy Medical (COCH) shares collapsed 36% in pre-market trading after announcing a $16 million registered direct offering. The hearing health company priced 3 million shares at $1.33 each alongside warrants for 9 million additional shares, potentially diluting existing stockholders.

The capital raise comes despite yesterday's 97% rally, highlighting extreme volatility in the microcap healthcare sector. While year-to-date gains remain positive at 11%, COCH still shows a 44% annual decline - underscoring the risks of low-float medical technology plays.

Management intends to use proceeds for working capital, a standard but unconvincing rationale for companies needing emergency funding. The deal's structure - combining immediate equity sales with potential future dilution through warrants - reflects challenging market conditions for cash-burning medtech firms.