NeuroOne raises $ 12 million in share sale
Eden Prairie-based NeuroOne Medical Technologies Corp. raises $ 12 million through a secondary offering of its common stock. The medical technology company is selling 3.75 million shares at $ 3.20 per share.
NeuroOne is developing cortical electrode technology for the treatment of epilepsy, Parkinson’s disease and other conditions. The company began developing its technology in 2015 in partnership with the Mayo Clinic and leading academic medical centers.
NeuroOne stock closed at $ 2.91 per share on Wednesday, down 29.4% from its Tuesday close at $ 4.12 per share. The drop followed NeuroOne’s announcement of details of the new offering ahead of the market opening on Wednesday.
At noon on Thursday, the stock was trading at $ 2.94 per share.
According to details of a regulatory filing, the company will earn $ 10.86 million after deducting subscription discounts and offering fees. Craig-Hallum Capital Group, based in Minneapolis, is the underwriter of the offering. Craig-Hallum has a 30-day option to purchase up to 562,500 additional shares.
According to a statement from NeuroOne: “The company intends to use the net proceeds of this proposed offering for working capital and other general corporate purposes. “
In a regulatory filing Thursday, the company also announced preliminary fourth quarter and year-end results for its fiscal year ending September 30. The company announced that fourth quarter sales are expected to be $ 55,000 and annual sales are expected. at about $ 245,000. For the full year, NeuroOne expects a net loss of between $ 9.9 million and $ 10.05 million.
In January, the company raised $ 12.5 million through a private placement. NeuroOne began trading on the Nasdaq market in May, an upgrade from an OTC action.
For its fiscal year ending September 30, 2020, the company reported revenue of $ 1.9 million and a net loss of $ 13.6 million.