Preferreds sold at $1,000 each with warrants for 10.8 million shares
By Devika Patel
Knoxville, Tenn., Dec. 30 – NeuroMetrix, Inc. said it arranged a $13.8 million private placement of series C convertible preferred stock on Tuesday. Rodman & Renshaw is the agent.
The company will sell 13,800 preferreds at $1,000.00 per preferred.
The preferreds will be convertible into about 5.4 million common shares at a conversion price of $2.55.
The investors also will receive warrants for about 10.8 million common shares. The warrants are each exercisable at $2.30, with half exercisable for one year and the remainder exercisable for five years.
The strike price and conversion price are identical and a 10.87% premium to the $2.30 closing share price on Dec. 28.
Settlement is expected Dec. 31.
About $6.3 million of the proceeds will be used to redeem 63,000 series B convertible preferred shares held by the investor and the balance of the proceeds will be used for general working capital purposes.
The medical device company has headquarters in Waltham, Mass.
| Issuer: | NeuroMetrix, Inc.
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| Issue: | Series C convertible preferred stock
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| Amount: | $13.8 million
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| Shares: | 13,800
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| Price: | $1,000.00
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| Conversion price: | $2.55
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| Conversion ratio: | Into about 5.4 million common shares
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| Warrants: | For about 10.8 million shares
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| Warrant expiration: | One year, five years
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| Warrant strike price: | $2.30
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| Agent: | Rodman & Renshaw
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| Pricing date: | Dec. 29
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| Settlement date: | Dec. 31
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| Stock symbol: | Nasdaq: NURO
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| Stock price: | $2.30 at close Dec. 28
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| Market capitalization: | $6.72 million
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