WALTHAM, Mass.--(BUSINESS WIRE)--
NeuroMetrix, Inc. (Nasdaq:NURO), an innovative health care company that
develops wearable medical technology and point-of-care tests to help
patients and physicians manage chronic pain, nerve diseases, and sleep
disorders, today announced that it has priced an upsized underwritten
public offering of 147,000 units, with each unit consisting of one share
of Series B convertible preferred stock and 99 warrants exercisable for
99 shares of our common stock, at a public offering price of $100 per
unit. The units will immediately and automatically separate upon
issuance. Subject to certain ownership limitations, the Series B
convertible preferred stock is convertible at any time into an aggregate
of 14,553,000 shares of common stock at a conversion price of $1.0101
per share and the warrants are exercisable for an aggregate of
14,553,000 shares of common stock. The warrants have an exercise price
of $1.25 per share, expire five years from the date of issuance and are
expected to begin trading today on The NASDAQ Capital Market under the
symbol "NUROW".
The gross proceeds to the Company from this offering are estimated to be
approximately $14.7 million, before deducting underwriting discounts and
commissions and offering expenses payable by the Company, and before the
repurchase of all of the outstanding shares of the Company's Series A-4
convertible preferred stock for approximately $3.2 million, which is
expected to occur simultaneously with the closing of this offering. The
offering is anticipated to close on May 29, 2015, subject to customary
closing conditions.
The Company intends to use the net proceeds of this offering to fund the
commercial launch of Quell™ in the United States and for general
corporate purposes. Quell is an over-the-counter wearable pain relief
device that utilizes proprietary non-invasive neurostimulation
technology to provide pain relief. The device is designed for people
with conditions such as diabetic nerve pain, low back and leg pain,
fibromyalgia, and pain associated with osteoarthritis. The advanced
wearable device is lightweight and can be worn during the day while
active, and at night while sleeping. It has been cleared by the FDA for
treatment of chronic pain without a prescription. Users of the device
have the option of using their smart phone to track and personalize
their pain therapy through the Quell Relief app which is available in
the Apple app store.
Maxim Group LLC is acting as the sole book-running manager for 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. A registration statement on Form S-1
relating to these securities was declared effective by the Securities
and Exchange Commission on May 26, 2015. Any offer or sale will be made
only by means of a written prospectus forming part of the effective
registration statement. The Company will file a final prospectus with
the SEC relating to the Series B preferred stock and the warrants, and
following such filing, copies of the prospectus relating to this
offering may be obtained at the SEC's website at http://www.sec.gov.
Alternatively, copies may be obtained, when available, from Maxim Group
LLC, 405 Lexington Avenue, 2nd Floor, New York, NY 10174, at
212-895-3745.
About NeuroMetrix
NeuroMetrix is an innovative health-care 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. For more information, please visit www.NeuroMetrix.com.
Safe Harbor Statement
This press release contains certain statements that may include
"forward-looking statements." All statements other than statements of
historical fact included herein are "forward-looking statements." These
forward-looking statements are often identified by the use of
forward-looking terminology such as "believes," "expects" or similar
expressions, involving known and unknown risks and uncertainties.
Although the Company believes that the expectations reflected in these
forward-looking statements are reasonable, they do involve assumptions,
risks and uncertainties, and these expectations may prove to be
incorrect. You should not place undue reliance on these forward-looking
statements, which speak only as of the date of this press release. The
Company's actual results could differ materially from those anticipated
in these forward-looking statements as a result of a variety of factors,
including the risk factors discussed in the Company's periodic reports
that are filed with the Securities and Exchange Commission and available
on the SEC's website (http://www.sec.gov).
All forward-looking statements attributable to the Company or persons
acting on its behalf are expressly qualified in their entirety by these
risk factors. Other than as required under the securities laws, the
Company does not assume a duty to update these forward-looking
statements.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150527005839/en/
NeuroMetrix, Inc.
Thomas T. Higgins, 781-314-2761
SVP and
Chief Financial Officer
neurometrix.ir@neurometrix.com
Source: NeuroMetrix, Inc.
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