NeuroOne Medical Technologies Corporation Announces Pricing of $8.0 Million Public Offering of Common Stock

Rhea-AI Summary

NeuroOne Medical Technologies (NMTC) has announced the pricing of an underwritten public offering of 16,000,000 shares of common stock at $0.50 per share, aiming to raise $8.0 million in gross proceeds.

The company has granted the underwriter, Ladenburg Thalmann & Co. Inc., a 45-day option to purchase up to an additional 2,400,000 shares at the public offering price less underwriting discount. The offering is expected to close around April 7, 2025.

The net proceeds will be used for general working capital purposes. The shares will be issued under a shelf registration statement on Form S-3 that was declared effective by the SEC on August 16, 2024.

Positive

• Secured $8.0 million in gross proceeds through public offering
• Successfully priced offering with established underwriter

Negative

• Significant shareholder dilution with 16 million new shares
• Low share price of $0.50 indicates potential market weakness
• Additional dilution possible with 2.4M share underwriter option

Insights

Financial Analyst

NeuroOne's $8 million public offering announcement carries significant negative implications for current shareholders. The company is issuing 16 million shares at $0.50 per share, representing a steep 42% discount to the current $0.86 trading price. This substantial discount typically signals weak institutional demand and often leads to downward price pressure.

The dilution impact is particularly concerning. With a current market cap of only $26.5 million, this offering represents approximately 30% of the company's pre-offering value. The additional 2.4 million share option for underwriters could further compound this dilution.

Most troubling is the stated use of proceeds for "general working capital purposes" rather than specific growth initiatives or R&D investments. This generic designation often indicates pressing operational cash needs rather than strategic expansion, raising questions about NeuroOne's current cash burn rate and runway.

For small medical technology companies, financing at such unfavorable terms typically reflects options and suggests potential cash constraints. While securing additional runway is important, the substantial dilution and deep discount structure represent a significant cost to existing shareholders and establish a lower valuation benchmark for the company.

EDEN PRAIRIE, Minn., April 04, 2025 (GLOBE NEWSWIRE) -- NeuroOne Medical Technologies Corporation (Nasdaq: NMTC) (the “Company”), a medical technology company focused on improving surgical care options and outcomes for patients suffering from neurological disorders, announced today the pricing of an underwritten registered public offering of 16,000,000 shares of its common stock at a price of $0.50 per share.

Ladenburg Thalmann & Co. Inc. is acting as sole book-running manager for the offering.

All of the shares of common stock to be sold in the offering will be sold by the Company. In addition, the Company has granted the underwriter a 45-day option to purchase up to an additional 2,400,000 shares of its common stock at the public offering price less the underwriting discount.

The gross proceeds to the Company from this offering, before deducting underwriting discounts and commissions and offering expenses, but excluding any exercise of the underwriter’s option to purchase additional shares, are expected to be $8,000,000. The Company intends to use the net proceeds from this offering for general working capital purposes. The offering is expected to close on or about April 7, 2025, subject to customary closing conditions.

The shares will be issued pursuant to a shelf registration statement on Form S-3 (File No. 333-279871) that was declared effective by the U.S. Securities and Exchange Commission (“SEC”), on August 16, 2024. A preliminary prospectus supplement and accompanying prospectus relating to the offering was filed with the SEC and is available on the SEC’s website at www.sec.gov. A final prospectus supplement will be filed with the SEC. Copies of the final prospectus supplement and accompanying prospectus relating to the offering, when available, may also be obtained by contacting Ladenburg Thalmann & Co. Inc., 640 Fifth Avenue, 4th Floor, New York, New York 10019, or by telephone at (212) 409-2000 or by email at prospectus@ladenburg.com.

This press release does not and shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or other 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 other jurisdiction. Any offer, if at all, will be made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement.

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Forward Looking Statements

This press release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Except for statements of historical fact, any information contained in this press release may be a forward–looking statement that involve known and unknown risks and uncertainties. In some cases, you can identify forward–looking statements by the words "may," "might," "will," "could," "would," "should," "expect," "intend," "plan," "objective," "anticipate," "believe," "estimate," "predict," "project," "potential," "target," "seek," "contemplate," "continue" and "ongoing," or the negative of these terms, or other comparable terminology intended to identify statements about the future. Forward–looking statements include statements related to the offering. Although the Company believes that we have a reasonable basis for each forward-looking statement, we caution you that these statements are based on a combination of facts and factors currently known by us and our expectations of the future, about which we cannot be certain. Our actual future results may be materially different from what we expect due to factors largely outside our control, including risks and uncertainties related to market and other conditions, the satisfaction of customary closing conditions related to the public offering, the impact of general economic, industry or political conditions in the United States or internationally and those described under the heading "Risk Factors" in our filings with the SEC. These forward–looking statements speak only as of the date of this press release and the Company undertakes no obligation to revise or update any forward–looking statements for any reason, even if new information becomes available in the future.

Contact Information

Chris Donovan
MZ Group – MZ North America
(914) 352-5853
NMTC@mzgroup.us

FAQ

What is the size and price of NeuroOne Medical's (NMTC) April 2025 public offering?

NeuroOne Medical is offering 16,000,000 shares at $0.50 per share, aiming to raise $8.0 million in gross proceeds.

How will NMTC use the proceeds from its April 2025 stock offering?

The company intends to use the net proceeds for general working capital purposes.

When is NMTC's public offering expected to close?

The offering is expected to close on or about April 7, 2025, subject to customary closing conditions.

What additional options were granted to the underwriter in NMTC's offering?

The underwriter received a 45-day option to purchase up to 2,400,000 additional shares at the public offering price less underwriting discount.

Who is the underwriter for NMTC's April 2025 public offering?

Ladenburg Thalmann & Co. Inc. is acting as the sole book-running manager for the offering.