WALTHAM, Mass.--(BUSINESS WIRE)--
NeuroMetrix, Inc. (Nasdaq: NURO) reported that it has closed its
previously announced private placement of preferred stock and warrants.
The Company sold to a healthcare dedicated institutional investor 13,800
shares of Series C convertible preferred stock at a price of $1,000 per
share, and two series of warrants to purchase an aggregate of
approximately 10.8 million shares of common stock at an exercise price
of $2.30 per share. The convertible preferred stock is convertible into
5.4 million shares of common stock at an initial conversion price of
$2.55 per share, subject to certain ownership limitations.
The Company received gross proceeds from the offering of $13.8 million.
Simultaneously with closing, it used $6.3 million to redeem 63,000
shares of Series B convertible preferred stock held by the investor. The
net proceeds of $7.5 million, before deducting banker fees and
transaction costs, will be used for general working capital purposes
including marketing support for Quell®, the Company's
over-the-counter wearable device for relief of chronic pain that was
launched during the second quarter of 2015.
Rodman & Renshaw, a unit of H.C. Wainwright & Co., LLC, acted as the
exclusive placement agent for the transaction.
NeuroMetrix is an innovative healthcare company that develops wearable
medical technology and point-of-care tests that help patients and
physicians better manage chronic pain, nerve diseases, and sleep
disorders. 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 www.NeuroMetrix.com.
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Thomas T. Higgins, 781-314-2761
Chief Financial Officer
Source: NeuroMetrix, Inc.
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