NeuroOne Raising $12M in Stock Sale
Eden Prairie-based NeuroOne Medical Technologies Corp. is raising $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 started developing its technology in 2015 in partnership with the Mayo Clinic and prominent academic medical centers.
NeuroOne’s stock closed at $2.91 per share on Wednesday, down a steep 29.4 percent from its Tuesday closing at $4.12 per share. The drop followed NeuroOne’s announcement of the specifics of the new offering before the market opened on Wednesday.
In midday trading on Thursday, the stock was trading at $2.94 per share.
According to details in a regulatory filing, the company will net $10.86 million after deducting underwriting discounts and offering expenses. Minneapolis-based Craig-Hallum Capital Group is the underwriter for the offering. Craig-Hallum has a 30-day option to purchase up to 562,500 additional shares.
According to a statement from the NeuroOne: “The company intends to use the net proceeds from this proposed offering for working capital and other general corporate purposes.”
In a regulatory filing on Thursday, the company also announced preliminary fourth quarter and year-end results for its fiscal year ending on September 30. The company reported that revenue for the fourth quarter is expected to be $55,000 and the full-year revenue is expected to be approximately $245,000. For the full year, NeuroOne expects a net loss between $9.9 million and $10.05 million.
In January, the company raised $12.5 million through a private placement. NeuroOne started trading on the Nasdaq market in May, an upgrade from being an over-the-counter stock.
For its fiscal year ending on September 30, 2020, the company reported revenue of $1.9 million and a net loss of $13.6 million.