- Thinly traded nano cap NeuroMetrix (NASDAQ:NURO) slumps 19% premarket on light volume in response to its announcement of a direct placement of 7,000 shares of Series F convertible preferred stock at $1,000 per share to an institutional investor. The company expects to receive $7M from the transaction, half initially and half subject to shareholder approval and an effective resale registration statement. Proceeds will fund the commercialization of Quell and working capital.
- Series F shares will be convertible any time into ~2,661,597 common shares at $2.63.
- At the shareholders meeting, the company will also seek approval to reset the conversion price to $2.63 for Series D and Series E convertible preferred shares held by the same investor. It has also agreed to issue 3,621 Series F shares to the investor in exchange for warrants to purchase 4,184,483 common shares.
- The first tranche of the offering should close by July 13.
- Yesterday's close was $2.64.
- Now read: Can Baxter Continue Its Run After The Spin-Off From Baxalta?
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