|NeuroMetrix to Raise $18.68 Million|
|By Staff and Wire Reports|
|Tuesday, 08 September 2009 15:10|
NeuroMetrix (NASDAQ:NURO) announced that it has obtained commitments from institutional investors to purchase approximately $18.68 million of its common stock in a private placement.NeuroMetrix has entered into securities purchase agreements pursuant to which it will sell an aggregate of 8,816,521 shares and warrants to purchase up to 8,375,695 additional shares of common stock. Each unit, consisting of one share of common stock and a warrant to purchase 0.95 of a share of common stock, will be sold for a purchase price of $2.12. The offering is expected to close later this week.
According to the Company, proceeds from the transaction are expected to be used to expand its direct US sales force, increase its international presence, fund certain clinical outcome studies, advance its lead potassium channel blocker compound to a Phase I milestone, as well as for other general working capital purposes.
The warrants will be exercisable at an exercise price equal to $2.20, which represents a 10% premium over the consolidated closing bid price of the common stock as reported on the Nasdaq Stock Market on September 4, 2009. The warrants are exercisable commencing on the six-month anniversary of the closing and will expire five years from the date of issuance.
In connection with the financing, NeuroMetrix has agreed, subject to certain terms and conditions, to file a registration statement under the Securities Act covering the registration of the common stock and warrants acquired at closing within 45 days after closing.
NeuroMetrix, Inc. is a science-based medical device company advancing patient care through the development and commercialization of products that aid physicians in the assessment, treatment, and repair of peripheral nerve and spinal cord injuries and disorders, and that provide regional anesthesia and pain control. The Company market systems for the performance of nerve conduction studies and needle electromyography procedures. They have two medical devices cleared by the United States Food and Drug Administration (FDA) that are used for the assessment of neuropathies. The first device is the ADVANCE NCS/EMG System, a platform for the performance of nerve conduction studies and needle electromyography procedures. This system is used by neurologists, physical medicine and rehabilitation (PM&R), physicians, neurosurgeons, orthopaedic, hand surgeons and pain medicine physicians. The second device is the NC-stat System, an automated device for the performance of nerve conduction studies.