NeuroMetrix (NSDQ:NURO) said yesterday it closed a $21.3 million round of funding through the private placement of preferred stock and warrants to support its Quell wearable pain relief device for patients with chronic pain.
The Waltham, Mass.-based company said it sold 21,300 shares of Series D convertible preferred stock at $1,000 per share and warrants to purchase an aggregate of approximately 11.8 million shares of common stock at $1.69 per share to a healthcare dedicated institutional investor.
Convertible preferred stock sold in the round is convertible into 11.8 million shares of common stock at $1.80 per share, according to a press release.
NeuroMetrix said it used $13.8 million of the gross proceeds from the offering to redeem 13,800 shares of Series C convertible preferred stock. The remaining $7.5 million will be used for general working capital purposes as well as marketing for the Quell wearable device.
Rodman & Renshaw, acted as the exclusive placement agent for the transaction, the company said.
Despite closing the round, shares in NeuroMetrix have dropped 2.9% as of 1:42 p.m. EDT to trade at $1.93.
Last week, NeuroMetrix saw shares rise to $2 upon announcing the $21 million private placement round as well as the placement of its Quell device at 1,000 retail stores.
NeuroMetrix said that Quell, a wearable, over-the-counter chronic pain relief device, is due to hit shelves at more than 1,000 chain drug store outlets this month. Walgreen’s CVS and Target all carry the device.