NeuroMetrix (NSDQ:NURO) said today it closed a private placement round, bringing in a total of $7 million to support the commercialization of its Quell wearable pain relief device.
The Waltham, Mass.-based company said it sold 7,000 shares of Series E convertible preferred stock at $1,000 per share, as well as warrants to purchase an aggregate of approximately 10 million shares at 70¢ per share.
NeuroMetrix said it already received gross proceeds of $4 million from the 1st tranche of the offering, and that it expects to receive gross proceeds of $3 million from a 2nd tranche, according to a press release. The company said it will seek shareholder approval for the 2nd tranche of Series E notes.
Warrants offered in the round will be exercisable 6 months from their issuance, and will expire at 5 years.
H.C. Wainwright & Co.’s Rodman & Renshaw acted as the exclusive placement agent for the offering.
Last November, NeuroMetrix said it won CE Mark approval in the European Union for its Quell wearable pain relief device, now cleared as a class IIa medical device in the region.
The company said that recent studies indicate that 20-40% of the adult European population suffers from chronic pain, which costs the region approximately $250 billion annually. NeuroMetrix’s Quell is designed to treat chronic pain, which can help improve sleep, mental and general health.
In September, NeuroMetrix said it launched a pilot study of its Quell wearable pain relief device for treating patients with fibromyalgia. NeuroMetrix said it is partnering with the Synovation medical group to carry out the study.
