Nuwellis ( NASDAQ: NUWE ) shares fell ~38% premarket on Friday after the company priced its $9.6M underwritten public offering of units.
The offering includes 15,235,196 Class A units, offered at a price of $0.25/unit, and 23,157,124 Class B Units, offered at $0.25/unit.
Each Class A unit consists of one share of common stock and 1.5 warrants to purchase one share of common stock at an exercise price of $0.25/share.
The warrants will be exercisable beginning on the effective date of a reverse stock split in an amount sufficient to permit the exercise in full of the warrants, contingent upon stockholder approval of such reverse stock split and of the exercisability of the warrants under Nasdaq rules and will expire on the sixth anniversary of the initial exercise date.
In total, 15,235,196 shares of common stock, 23,157,124 shares of Series I convertible preferred stock, and warrants to purchase up to 57,588,480 shares of common stock will be issued in the offering.
Underwriters have been granted a 45-day option to purchase up to 5,758,848 additional shares of common stock and additional warrants to purchase up to 8,638,272 shares of common stock, solely to cover over-allotments.
Gross proceeds are estimated to be ~$9.6M.
For further details see:
Nuwellis stock slides after pricing $9.6M securities offering