Nemaura Medical Announces Pricing of Approximately $8.4 Million Registered Direct Offering and Concurrent Private Placement
January 27 2023 - 08:20AM
GlobeNewswire Inc.
Nemaura Medical, Inc. (NASDAQ: NMRD) (“Nemaura” or the “Company”),
a medical technology company focused on developing and
commercializing non-invasive wearable sensors and supporting
personalized lifestyle and weight reduction programs, today
announced it has entered into a definitive agreement with two
healthcare-focused U.S. institutional investors to sell 4,796,206
shares of its common stock (the “Shares”), pursuant to a registered
direct offering (the “Registered Direct Offering”), and warrants to
purchase up to 4,796,206 Shares (the “Warrants”), in a concurrent
private placement (the “Private Placement”). The combined purchase
price for one Share and one Warrant will be $1.75. The Warrants
will have an exercise price of $2.00 per Share, will be initially
exercisable at the later of shareholder approval or 6 months
following the date of issuance and will expire five and a half
years from the closing date. The aggregate gross proceeds from the
Registered Direct Offering and the concurrent Private Placement are
expected to be approximately $8.4 million before deducting
placement agent fees and other estimated offering expenses.
The closing of the Offering and the concurrent
Private Placement is expected to occur on or about January 31,
2023, subject to the satisfaction of customary closing
conditions.
EF Hutton, division of Benchmark Investments,
LLC, is acting as sole placement agent for the offering.
Anthony L.G., PLLC is acting as legal counsel to
Nemaura and Sichenzia Ross Ference LLP is acting as legal counsel
to EF Hutton.
Nemaura intends to use the net proceeds for
working capital and general corporate purposes.
The Shares offered in the Registered Direct
Offering (but not the Warrants issued in the concurrent Private
Placement or the shares of common stock underlying the Warrants)
are being offered by the Company pursuant to a shelf registration
statement (Registration No. 333-263618) filed with the Securities
and Exchange Commission (the “SEC”) and declared effective by the
SEC on March 28, 2022. The offering is being made only by means of
a prospectus supplement and accompanying prospectus. A prospectus
supplement and accompanying prospectus relating to the registered
direct offering will be filed with the SEC and, when available, may
be obtained for free on the SEC’s website located at
http://www.sec.gov. When available, electronic copies of the final
prospectus supplement and accompanying prospectus relating to the
Registered Direct offering may be obtained by contacting EF Hutton,
division of Benchmark Investments, LLC, Attention: Syndicate
Department, 590 Madison Avenue, 39th Floor, New York, NY 10022, by
email at syndicate@efhuttongroup.com, or by telephone at (212)
404-7002.
The Warrants and the shares underlying the
Warrants sold in the concurrent Private Placement are being issued
in a private placement under Section 4(a)(2) of the Securities Act
of 1933, as amended (the “Act”), and/or Rule 506(b) of Regulation D
promulgated thereunder and have not been registered under the Act,
or applicable state securities laws. Accordingly, the Warrants and
the shares underlying the Warrants issued in the Private Placement
may not be offered or sold in the United States except pursuant to
an effective registration statement or an applicable exemption from
the registration requirements of the Act and such applicable state
securities laws.
This press release shall not constitute an offer
to sell or the solicitation of an offer to buy, nor shall there be
any sale of these securities in any state or jurisdiction in which
such offer, solicitation, or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state or jurisdiction.
About Nemaura
Medical
Nemaura Medical Inc. is a medical technology
company developing and commercialising non-invasive wearable
diagnostic devices. The Company is currently also commercialising
sugarBEAT® and proBEAT™. sugarBEAT®, a CE mark approved Class IIb
medical device, as a non-invasive and flexible continuous glucose
monitor (CGM) providing actionable insights derived from real time
glucose measurements and daily glucose trend data, which may help
people with diabetes and prediabetes to better manage, reverse, and
prevent the onset of diabetes. Nemaura has submitted a PMA
(Premarket Approval Application) for sugarBEAT® to the US FDA.
proBEAT™ combines non-invasive glucose data processed using
artificial intelligence under a digital healthcare subscription
service as part of its BEAT® diabetes program.
The Company sits at the intersection of the
global Type 2 diabetes market that is expected to reach nearly $59
billion by 2025, the $50+ billion pre-diabetic market, and the
wearable health-tech sector for weight loss and wellness
applications that is estimated to reach $60 billion by 2023.
For more information, please visit
www.NemauraMedical.com.
Cautionary Statement Regarding
Forward-Looking Statements:
The statements in this press release that are
not historical facts may constitute forward-looking statements that
are based on current expectations and are subject to risks and
uncertainties that could cause actual future results to differ
materially from those expressed or implied by such statements.
Those risks and uncertainties include, but are not limited to, the
launch of proBEAT™ in the U.S., risks related to regulatory status
and the failure of future development and preliminary marketing
efforts, Nemaura’s ability to secure additional commercial
partnering arrangements, risks and uncertainties relating to
Nemaura’s and its partners’ ability to develop, market and sell
proBEAT™, the availability of substantial additional equity or debt
capital to support its research, development and product
commercialization activities, and the success of its research,
development, regulatory approval, marketing and distribution plans
and strategies, including those plans and strategies related to
both proBEAT™ digital health, and sugarBEAT®. There can be no
assurance that the Company will be able to reach a part of or any
of the global market for CGM with its products/services. The U.S.
Food and Drug Administration (the “FDA”) reserves the right to
re-evaluate its decision that proBEAT™ qualifies as a general
wellness product should it become aware of any issues such as skin
irritation or other adverse events from the device, as well as any
misuse impacting patient safety, and any other reason as the FDA
may see fit at its discretion to determine the product does not fit
the definition of a general wellness product. These and other risks
and uncertainties are identified and described in more detail in
Nemaura’s filings with the United States Securities and Exchange
Commission, including, without limitation, its Annual Report on
Form 10-K for the most recently completed fiscal year, its
Quarterly Reports on Form 10-Q, and its Current Reports on Form
8-K. Nemaura undertakes no obligation to publicly update or revise
any forward-looking statements.
Media
Contacts
Jules AbrahamCORE IR+1 917-885-7378
HealthFleetJamie
Marcellusjmarcellus@healthfleet.com+1 339.255.4546
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