NeuroOne Medical Technologies (Nasdaq:NMTC) announced today that it signed a distribution deal for its OneRF ablation system.
The Eden Prairie, Minnesota-based company signed a non-binding term sheet with an undisclosed global medical technology company. The partnership remains subject to the negotiation and execution of definitive documentation, due diligence and other closing conditions.
NeuroOne’s latest partnership could mirror the one it has with Zimmer Biomet for its Evo sEEG electrodes.
The company’s OneRF system picked up FDA 510(k) clearance in December 2023. Indications cover the creation of radiofrequency (RF) lesions in nervous tissue for functional neurosurgical procedures. This technology uses already-implanted sEEG electrodes to record brain activity and enable the ablation of nervous tissue. It connects to a proprietary radiofrequency (RF) generator. NeuroOne’s electrodes provide a similar function at the subsurface level of the brain compared to cortical electrodes.
NeuroOne also closed a $2.65 million private placement and added $3 million in an additional credit facility.
“Today’s financings, $3 million of which is minimally dilutive to our shareholders, puts our company in a strong position to operate our business and move forward with a potential partnership for our OneRF Ablation System, which we anticipate will close by the end of the third calendar quarter,” Dave Rosa, CEO of NeuroOne, said in a news release.
More about the NeuroOne financings
NeuroOne’s private placement consisted of an aggregate of nearly 3 million shares of common stock, plus warrants to purchase 2.2 million shares of common stock at a purchase price of 90¢ per unit. Each unit consisted of one share of common stock and a warrant to purchase 0.75 shares of common stock.
Warrants have an exercise price of $1.19 per share of common stock. They’re exercisable for a period of three years from the date of issuance. Investors in this placement included current institutional investors and insiders.
The company also secured its $3 million credit line from Growth Opportunity Funding, LLC.
NeuroOne plans to use proceeds from its offering to fund operations, working capital and general corporate purposes. That could include expanding commercialization efforts for the limited OneRF launch. It could also extend to product development for a new ablation indication and completion of the diligence process with a potential strategic partners.
