Published on September 11, 2009 at 12:25 AM
NeuroMetrix, Inc. (Nasdaq:NURO), today announced that it has completed its private placement of common stock and warrants. Gross proceeds from the offering were approximately $18.7 million. The primary use of the capital will be to expand its direct US sales force, increase its international presence, fund certain clinical outcome studies, advance its lead potassium channel blocker compound to a Phase I milestone, as well as for other general working capital purposes.
The company issued an aggregate of 8,816,521 newly-issued shares of common stock and warrants to purchase up to 8,792,726 additional shares of common stock (including warrants issued to the placement agents). NeuroMetrix expects to receive net proceeds of approximately $17.3 million after deducting placement agent fees and other offering expenses.
The financing was led by Deerfield Management, an existing investor, with participation by Cummings Bay Advisors, Delphi Ventures, Great Point Partners, Gruber & McBaine Capital Management, New Enterprise Associates, and Symmetry Capital Management.
In connection with the financing, NeuroMetrix has agreed, subject to certain terms and conditions, to file a registration statement under the Securities Act covering the registration of the common stock and warrants acquired at closing within 45 days after closing.
Canaccord Adams Inc. acted as placement agent and Ladenburg Thalmann (NYSE Amex: LTS) acted as co-agent for the transaction. Honigman Miller Schwartz and Cohn LLP served as legal advisor to NeuroMetrix in the transaction.
http://www.neurometrix.com/