Nexalin Technology Announces Pricing of $5.2 Million Public Offering

Rhea-AI Summary

Nexalin Technology announced the pricing of a $5.2 million public offering, involving 3,000,000 shares of common stock at $1.75 per share. The company expects to generate gross proceeds of approximately $5.25 million before fees and expenses. Maxim Group is the sole placement agent for this offering, which is scheduled to close on July 1, 2024, contingent on standard closing conditions. This offering was made under a registration statement declared effective by the SEC on June 27, 2024. The final prospectus will be filed with the SEC, and copies can be obtained from Maxim Group

Positive

• Nexalin Technology will raise approximately $5.25 million in gross proceeds.
• The offering could potentially provide the company with funds for growth and development.

Negative

• The issuance of 3,000,000 new shares could dilute existing shareholders' equity.

Financial Analyst

The announcement of Nexalin Technology pricing its public offering at $5.25 million warrants a closer look from a financial perspective. The pricing of shares at $1.75 each might indicate that the company is seeking to raise capital swiftly, possibly for expansion or to shore up its balance sheet. Public offerings can be both a sign of growth potential or financial need. While the gross proceeds of $5.25 million sound promising, investors should consider the net proceeds, as placement agent fees and other expenses will reduce this amount. Notably, Maxim Group LLC serves as the sole placement agent, a reputable firm that could bring credibility to the offering. However, investors should be cautious about dilution, as issuing 3 million new shares will decrease the ownership percentage of existing shareholders, potentially impacting earnings per share (EPS). The effective registration statement with the SEC provides transparency, yet the obligation to file a final prospectus signals that there are subsequent legal and regulatory steps to be completed. It’s important to keep an eye on the company’s intended use of these funds and any forward-looking statements they might make post-offering.

Market Research Analyst

From a market research perspective, Nexalin Technology's public offering can paint a broader picture of its market strategy and investor sentiment. Pricing the shares at $1.75 each, relatively low for a public offering, might hint at the perceived valuation by market participants or the company's current market position. This offering could attract a variety of investors, both retail and institutional, who may be speculating on future growth prospects. Understanding the current market environment is important as economic conditions, sector trends and competitive dynamics play pivotal roles in investor decisions. The funds raised might be aimed at amplifying research and development, marketing efforts, or other growth initiatives. However, the company must communicate its strategic uses effectively to maintain investor confidence. Furthermore, the market's reaction post-offering will be telling; if the stock price remains stable or rises, it could indicate strong demand and positive sentiment. Conversely, a drop could reflect concerns over dilution or execution risks.

HOUSTON, TX, June 27, 2024 (GLOBE NEWSWIRE) -- Nexalin Technology, Inc. (Nasdaq: NXL; NXLIW) (the “Company” or “Nexalin”) today announced the pricing of a 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, are expected to be approximately $5,250,000.

Maxim Group LLC is acting as the sole placement agent for the offering. The offering is expected to close on July 1, 2024, subject to customary closing conditions.

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 will be filed with the SEC. 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 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 size of Nexalin Technology's recent public offering?

Nexalin Technology's recent public offering involves 3,000,000 shares of common stock at a price of $1.75 per share.

When is Nexalin Technology's public offering expected to close?

Nexalin Technology's public offering is expected to close on July 1, 2024, subject to customary closing conditions.

How much does Nexalin Technology expect to raise from the public offering?

Nexalin Technology expects to raise approximately $5.25 million in gross proceeds from the public offering.

Who is acting as the placement agent for Nexalin Technology's public offering?

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

What is the stock symbol for Nexalin Technology?

Nexalin Technology's stock symbol is NXL.