The Boston-based stent maker said it agreed to sell approximately 6.2 million shares $1.30 each, plus warrants to purchase up to 3.1 million additional shares. Each purchased share will include a warrant to buy 0.5 shares at a strike price of $1.75 apiece. The warrants are exercisable for a 42-month period starting 6 months after issuance.
InspireMD said it expects the transaction, which is expected to around Nov. 7, to generate gross proceeds of around $8 million. A prospectus for the offering will be filed with the U.S. Securities and Exchange Commission by Nov. 5.
Shares of InspireMD took a hit earlier this month after the company announced it was abandoning plans to bring its MGuard stent to the U.S. market. InspireMD in June began re-introducing the MGuard Prime EPS in Europe after pulling it last April and suspending the Master II trial due over the risk of the stent being dislodged during implantation. Today the Boston-based company said it believes that all MGuard Prime inventory has been "successfully modified" and that it was back to "full commercial activities" in Europe as of Oct. 10.
That news was overshadowed by the announcement that InspireMD is closing enrollment in the Master II trial and will follow the 310 patients already participating in the study for a year.
"Our decision to suspend enrollment in MASTER II and evaluate our interim data will guide our evolving clinical strategy in order to insure that we maximize our clinical investments to help drive adoption of our MGuard and CGuard technology," CEO Alan Milinazzo said at the time.