Waltham, Mass.-based NeuroMetrix said it sold 147,000 shares at $100 per share and repurchased all of the outstanding shares of its Series A-4 convertible preferred stock for approximately $3.2 million.
The proceeds are slated to be used to fund the commercial launch of its Quell chronic pain relief device, the company said. The first shipments of the device began last month.
NeuroMetrix said it has already begun fulfilling preorders the company offered through crowdfunding site IndieGogo, and that it plans to continue clearing remaining backorders to begin commercial shipments for new orders in June. The company said it has a 2000 unit backlog for the device.
“Initiating shipments of Quell represents a significant milestone for NeuroMetrix. This is an important step in completing our transformation from a traditional medical device company to one focused on the growing consumer healthcare market. Our employees have worked very hard to achieve this goal, and we are justifiably proud of this important achievement. We now look forward to growing Quell into a large and successful consumer healthcare brand,” CEO Dr. Shai Gozani said in a press release.
Quell is a wearable, non-invasive neurostimulation pain relief device designed to treat chronic pain resulting from diabetes, fibromyalgia and osteoarthritis as well as lower back and leg pain, the company said. The device can be worn during the day or at night, and was cleared for use without a prescription by the FDA last summer.