NeuroMetrix Closes $3.5 Million Equity Offering
October 31 2017 - 9:07AM
Business Wire
NeuroMetrix, Inc. (NASDAQ: NURO) today closed a $3.5
million private placement of 3,500 shares of Series F convertible
preferred stock at a price of $1,000 per share that are convertible
into 1,330,798 shares of common stock at a conversion price of
$2.63 per share. The Company’s common stock closed on October 30,
2017 at $1.80 per share. Proceeds of the offering will be used for
commercialization of Quell®, the Company's over-the-counter
wearable device for relief of chronic pain and for general working
capital purposes.
Today’s closing was the second and final tranche of a $7 million
private placement equity offering with a healthcare dedicated
institutional investor reported in July 2017. Shareholder approval
of the issuance of the shares in the second tranche was obtained at
a special meeting held on September 15, 2017. The shares of common
stock underlying the Series F convertible preferred stock have been
registered on a registration statement on Form S-3, declared
effective by the Securities and Exchange Commission on October 27,
2017. A total of 7,000 shares of Series F convertible preferred
stock were issued in the private placement, at a price
of $1,000 per share with gross proceeds of $7.0
million. The Series F convertible preferred stock is convertible at
any time into an aggregate of 2,661,597 shares of common stock at a
conversion price of $2.63, subject to certain ownership
limitations. The Series F convertible preferred stock is only
entitled to dividends in the event dividends are paid on the
Company's common stock and will not have any preferences over the
Company's common stock, including liquidation rights.
The Company obtained shareholder approval for the issuance of
the second tranche of the Series F convertible preferred stock, and
for amendments to reset the conversion price to $2.63 for 14,053
shares of Series D convertible preferred stock and 7,000 shares of
Series E convertible preferred stock held by the investor. There
were no warrants issued in connection with the offering.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any of the securities described
herein, nor shall there be any sale of these securities in any
state or jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction.
About NeuroMetrix
NeuroMetrix is a commercial stage, innovation driven healthcare
company combining neurostimulation and digital medicine to address
chronic health conditions including chronic pain, sleep disorders,
and diabetes. The company's lead product is Quell, an
over-the-counter wearable therapeutic device for chronic pain.
Quell is integrated into a digital health platform that helps
patients optimize their therapy and decrease the impact of chronic
pain on their quality of life. The company also markets DPNCheck®,
a rapid point-of-care test for diabetic neuropathy, which is the
most common long-term complication of Type 2 diabetes. The company
maintains an active research effort. The company is located in
Waltham, Massachusetts and was founded as a spinoff from the
Harvard-MIT Division of Health Sciences and Technology in 1996. For
more information, please visit NeuroMetrix.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20171031005913/en/
NeuroMetrix, Inc.Thomas T. Higgins, 781-314-2761SVP and Chief
Financial Officerneurometrix.ir@neurometrix.com
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