Deal sells series D preferreds with warrants via Rodman & Renshaw
By Devika Patel
Knoxville, Tenn., June 2 – NeuroMetrix, Inc. said it arranged a $21.3 million private placement of 0% series D convertible preferred stock. Rodman & Renshaw is the agent.
The 21,300 preferreds are being sold at $1,000 apiece with warrants for about 11.8 million shares.
The preferreds are initially convertible into about 11.8 million common shares at $1.805 per share. The warrants are each exercisable at $1.69 for five years. The conversion price and strike price represent a 6.18% premium and 0.59% discount to the June 1 closing share price of $1.70.
Settlement is expected June 8.
Proceeds will be used to redeem 13,800 series C convertible preferred shares held by the investor and for general corporate purposes
The medical device company has headquarters in Waltham, Mass.
| Issuer: | NeuroMetrix, Inc.
|
| Issue: | Series D convertible preferred stock
|
| Amount: | $21.3 million
|
| Preferreds: | 21,300
|
| Price: | $1,000
|
| Dividends: | 0%
|
| Conversion price: | $1.805
|
| Conversion ratio: Into about 11.8 million shares
|
| Warrants: | For about 11.8 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.69
|
| Agent: | Rodman & Renshaw
|
| Pricing date: | June 2
|
| Settlement date: | June 8
|
| Stock symbol: | Nasdaq: NURO
|
| Stock price: | $1.70 at close June 1
|
| Market capitalization: | $7.9 million
|
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