Nexalin Technology Announces Closing of $5.2 Million Public Offering

Rhea-AI Summary

Nexalin Technology closed a public offering of 3,000,000 shares of common stock at $1.75 per share, raising approximately $5.25 million in gross proceeds before fees and expenses. The offering was facilitated by Maxim Group as the sole placement agent.

The shares were registered under a Form S-1 registration statement, which the SEC declared effective on June 27, 2024. A final prospectus was filed on June 28, 2024, and the offering concluded on July 1, 2024.

This announcement does not constitute an offer or solicitation to sell these securities in any jurisdiction where such would be unlawful.

Positive

• Nexalin Technology successfully raised $5.25 million in gross proceeds.
• The offering was supported by Maxim Group as the sole placement agent.

Negative

• The issuance of 3,000,000 additional shares may lead to shareholder dilution.

Financial Analyst

The public offering of $5.2 million in gross proceeds provides an influx of capital for Nexalin Technology, which can be utilized for various strategic initiatives, such as research and development, marketing, or operational expansion. However, existing shareholders may face short-term dilution given the increase in the number of outstanding shares. Dilution occurs when a company issues additional shares, reducing existing shareholders' ownership percentage.

Another aspect to note is the offering price of $1.75 per share. This price level can provide insights into the company's perceived valuation by the market and its attractiveness to new investors. If the offering was oversubscribed, it could indicate strong investor confidence, but if it struggled to meet its target, that might signal underlying concerns.

Investors should also consider the placement agent, Maxim Group LLC, which has a reputation for working with high-growth companies. Their involvement could add credibility to the offering but also incurs costs that will reduce the net proceeds available to the company.

HOUSTON, TX, July 01, 2024 (GLOBE NEWSWIRE) -- Nexalin Technology, Inc. (Nasdaq: NXL; NXLIW) (the “Company” or “Nexalin”) today announced the closing of its previously announced public offering of 3,000,000 shares of common stock at public offering price of $1.75. Gross proceeds, before deducting placement agent fees and other offering expenses were approximately $5,250,000.

Maxim Group LLC acted as the sole placement agent for the offering.

The securities described above were offered pursuant to a registration statement on Form S-1, as amended (File No. 333-279684) (the “Registration Statement”), which was declared effective by the Securities and Exchange Commission (the "SEC") on June 27, 2024. The offering was made only by means of a prospectus which is a part of the Registration Statement. A final prospectus relating to the offering was filed with the SEC on June 28, 2024. Copies of the final prospectus relating to this offering may be obtained from Maxim Group LLC, 300 Park Avenue, 16th Floor, New York, NY 10022, at (212) 895-3745.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein, 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 the registration or qualification under the securities laws of any such state or other jurisdiction.

About Nexalin Technology, Inc.
Nexalin designs and develops innovative neurostimulation products to uniquely help combat the ongoing global mental health epidemic. All Nexalin’s products are believed to be non-invasive and undetectable to the human body and are developed to provide relief to those afflicted with mental health issues. Nexalin utilizes bioelectronic medical technology to treat mental health issues. Nexalin believes its neurostimulation medical devices can penetrate structures deep in the mid-brain that are associated with mental health disorders. Nexalin believes the deeper-penetrating waveform in its next-generation devices will generate enhanced patient response without any adverse side effects. The Nexalin Gen-2 15 milliamp neurostimulation device has been approved in China, Brazil, and Oman. Additional information about the Company is available at: https://nexalin.com/.

FORWARD-LOOKING STATEMENTS
This press release contains statements that constitute "forward-looking statements," these statements relate to future events or Nexalin’s future financial performance. Any statements that refer to expectations, projections or other characterizations of future events or circumstances or that are not statements of historical fact (including without limitation statements to the effect that Nexalin or its management “believes”, “expects”, “anticipates”, “plans”, “intends” and similar expressions) should be considered forward looking statements that involve risks and uncertainties which could cause actual events or Nexalin’s actual results to differ materially from those indicated by the forward-looking statements. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Registration Statement and the Company's Report on Form 10-K for the year ended December 31, 2023 and other filings as filed with the Securities and Exchange Commission. Copies of such filings are available on the SEC's website, www.sec.gov. Such forward-looking statements are made as of the date hereof and may become outdated over time. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

Contact:
Crescendo Communications, LLC
Tel: (212) 671-1020
Email: NXL@crescendo-ir.com

FAQ

What is the amount Nexalin Technology raised in their recent public offering?

Nexalin Technology raised approximately $5.25 million in gross proceeds in their recent public offering.

When did Nexalin Technology close their public offering?

Nexalin Technology closed their public offering on July 01, 2024.

How many shares were issued in Nexalin Technology's public offering?

Nexalin Technology issued 3,000,000 shares of common stock in the public offering.

What was the offering price for Nexalin Technology's public offering?

The offering price for Nexalin Technology's public offering was $1.75 per share.

Who was the sole placement agent for Nexalin Technology's public offering?

Maxim Group acted as the sole placement agent for Nexalin Technology's public offering.

What is the stock symbol for Nexalin Technology?

The stock symbol for Nexalin Technology is NXL.