Deal sells units of one convertible preferred, 99 five-year warrants
By Devika Patel
Knoxville, Tenn., May 27 – NeuroMetrix, Inc. said it will conduct a $14.7 million public offering of units.
The company will sell 147,000 units of one series B convertible preferred share and 99 warrants at $100.00 per unit.
The preferreds are convertible into a total of 14,553,000 common shares at $1.0101 per share. The whole warrants are each exercisable at $1.25 for five years. The strike price represents a 10.61% premium to the May 26 closing share price of $1.13. The conversion price is a 10.61% discount to that price.
Maxim Group LLC is the bookrunning manager.
Settlement is expected May 29.
Proceeds will be used for the commercial launch of Quell, an over-the-counter wearable pain relief device, and for general corporate purposes.
The medical device company has headquarters in Waltham, Mass.
| Issuer: | NeuroMetrix, Inc.
|
| Issue: | Units of one series B convertible preferred share and 99 warrants
|
| Amount: | $14.7 million
|
| Units: | 147,000
|
| Price: | $100.00
|
| Conversion price: | $1.0101
|
| Conversion rate: | Into a total of 14,553,000 shares
|
| Warrants: | 99 warrants per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.25
|
| Bookrunner: | Maxim Group LLC
|
| Pricing date: | May 27
|
| Settlement date: | May 29
|
| Stock symbol: | Nasdaq: NURO
|
| Stock price: | $1.13 at close May 26
|
| Market capitalization: | $8.86 million
|
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