NeuroMetrix (NSDQ:NURO) said today that it raised $26.5 million in a public offering. The offering was priced at 70¢ per share of common stock, via a warrants exercise. The warrants have an exercise price of 70¢ per share and will expire 5 years after their issuance date.
The company expects to spend nearly $19.5 million from the offering to redeem 19,450 shares of Series D convertible preferred stock and retire 25 million warrants to purchase outstanding common stock.
The rest of the proceeds will go towards commercialization of the company’s wearable device for chronic pain relief in the U.S. and for general corporate purposes, according to NeuroMetrix. Rodman & Renshaw is acting as exclusive placement agent for the public offering.
In November, Waltham, Mass.-based NeuroMetrix said it won CE Mark approval in the European Union for its Quell wearable pain relief device. The company pointed out that recent studies have shown that 20-40% of adult Europeans suffer from chronic pain, costing the region $250 billion annually.
The company launched a pilot study of its device in September to evaluate Quell as a treatment for patients with fibromyalgia. NeuroMetrix is partnering with the Synovation medical group to conduct the study, according to the company.
NURO shares were trading at 64¢ per share in afternoon trading activity, down -1.9%.