WALTHAM, Mass.–(BUSINESS WIRE)–$NURO #chronicpain–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 21,300
shares of Series D convertible preferred stock at a price of $1,000 per
share, and warrants to purchase an aggregate of approximately 11.8
million shares of common stock at an exercise price of $1.69 per share.
The convertible preferred stock is convertible into 11.8 million shares
of common stock at a conversion price of $1.805 per share, subject to
certain ownership limitations.
The Company received gross proceeds from the offering of $21.3 million.
Simultaneously with the closing, the Company used $13.8 million of the
gross proceeds from the offering to redeem 13,800 shares of Series C
convertible preferred stock held by the healthcare dedicated
institutional investor. The net proceeds of $7.5 million, before
deducting placement agent fees and other 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.
Rodman & Renshaw, a unit of H.C. Wainwright & Co., LLC, acted as the
exclusive placement agent for the transaction.
Quell utilizes NeuroMetrix’s patented neurostimulation technology to
provide widespread relief from chronic pain. 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. In a recent study, 81% of Quell
users reported an improvement in their chronic pain. Quell includes a
smartphone app that tracks and personalizes their pain therapy. Quell
was recently awarded the Innovation Award at SXSW for best Wearable
Technology. It is available for purchase at QuellRelief.com, selected
retailers and healthcare professionals.
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.
Thomas T. Higgins, 781-314-2761
Chief Financial Officer