Second Sight Medical (NSDQ:EYES) said today it closed a previously announced rights offering, retaining approximately $20.1 million with proceeds slated to support development and improvement of its Argus II retinal prosthesis.
The Argus II induces visual perception in blind patients with retinitis pigmentosa by stimulating of the retina’s remaining cells with electrical pulses, which allows for the perception of light patterns to the brain, the company said.
In the oversubscribed round, Sylmar, Calif.-based offered non-transferable subscription rights to purchase units composed of a share of Second Sight common stock and a 5-year warrant to purchase additional shares.
Warrant subscription price during the rights offering was $1.47 per share, with 13.7 million units offered. Warrants in the round have a 5 year life and are immediately exercisable.
Funds raised in the round will support continued development to improve performance of the Argus II and expand its market to better-sighted retinal pigments patients. The company said it will also continue funding for developing its Orion I visual prosthesis and to support an ongoing clinical study of its Argus II in patients with AMD.
In February, Second Sight said it won reimbursement coverage for its Argus II prosthesis from the German Institute for the Hospital Renumeration System, covering 15 hospitals in the group’s NUB1 innovation program.
The decision will allow approved hospitals to negotiate reimbursement for treating patients with advanced stage retinitis pigmentosa with the Argus II system with health insurance companies that cover more than 85% of Germany’s population.