The private placement of 21,300 Series C shares at $1,000 apiece went to an institutional investor dedicated to backing healthcare companies, Waltham, Mass.-based NeuroMetrix said. The offering also included warrants for 11.8 million shares at a $1.69 exercise price, the company said.
NeuroMetrix said it plans to use about $13.8 million of the proceeds to redeem 13,800 of the institutional investor’s holdings, with the balance going to working capital. Rodman & Renshaw was the sole placement agent for the deal, which is expected to close June 8.
In a separate release, 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.
“Consumers have told us that they expect to see and purchase Quell at leading chain drug stores,” president & CEO Dr. Shai Gozani said in prepared remarks. “We are therefore delighted to broaden the availability of Quell, our proprietary, 100% drug-free technology for the relief of widespread chronic pain. As Quell represents a new level of technology at premium pricing we will use learning from this test to optimize our full retail expansion.”
NURO shares closed up 4.7% at $1.80 apiece yesterday and gained another 11.1% after hours, rising to $2 even per share.