WALTHAM, Mass.--(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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171031005913/en/
NeuroMetrix, Inc.
Thomas T. Higgins, 781-314-2761
SVP and
Chief Financial Officer
neurometrix.ir@neurometrix.com
Source: NeuroMetrix, Inc.
News Provided by Acquire Media
