Nemaura Medical Inc (NASDAQ:NMRD) has announced plans to launch a public offering to raise up to $11.5 million to help fund the development and commercialization of its diagnostic devices and subscription services.
Under its “best efforts” offering, the Loughborough, UK-based company said it will issue 793,103 shares of its common stock. Each share of common stock and accompanying one-half of a warrant is being sold for a combined purchase price of $7.25 each.
Each whole warrant will have an exercise price of $8 a share and is exercisable immediately. The warrants will expire five years from the date of issuance.
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Nemaura’s announcement comes a day after it entered into a letter of intent (LOI) to acquire diabetes firm Healthimation LLC, which is commercializing an application-based diabetes prevention program using Hollywood-level animation for creative user engagement strategies.
Nemaura is developing micro-systems-based wearable diagnostic devices and currently commercializing sugarBEAT, its non-invasive and flexible continuous glucose monitor.
The devices and sugarBEAT are offered in conjunction with BEATdiabetes, a planned health subscription service designed to help people with Type 2 diabetes and pre-diabetes through personalized lifestyle coaching.
In a statement, Nemaura said it intends to spend some of the offering proceeds on the commercial start of the subscription service in the US and product launch in Europe, among other things.
Kingswood Capital Markets, a division of Benchmark Investments, Inc, is acting as the sole placement agent in connection with the offering, which closes July 30.
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