Neurometrix Inc (NURO) Shares Fall After Company Announces $13.8 Million Purchase Agreement


Shares of Neurometrix Inc (NASDAQ:NURO) shot up yesterday after it was announced that the company was launcing their DPNcheck test in Mexico. Today though, shares of the company stock are trading down significantly after another announcement was made after the market closed yesterday.

Neurometrix Inc (NASDAQ:NURO) has announced that they have entered into a definitive securities purchase agreement with an investor, in connection with a private placement of 13,800 shares of Series C preferred stock at a price of $1,000 per share. This agreement also includes two series of warrants to purchase approximately 10.8 million shares of common stock with an exercise price of $2.30 per share.

“The Series C convertible preferred stock is convertible at any time into an aggregate of approximately 5.4 million shares of common stock at an initial conversion price of $2.55 per share, subject to certain ownership limitations,” Neurometrix Inc (NURO) explained. “The Series C convertible preferred stock is only entitled to dividends in the event dividends are paid on the Company’s common stock and will not have any preferences over the Company’s common stock, including liquidation rights.”

The stock is down 11.68% or $0.27 following the news, hitting $2.04 per share. About 187,743 shares traded hands or 15.00% up from the average. NURO has risen 131.00% since May 27, 2015 and is uptrending. It has outperformed the S&P500 by 133.12%.

The institutional sentiment decreased to 0.6 in Q2 2015. It’s down 1.15, from 1.75 in 2015Q2. The ratio turned negative, as 4 funds sold all their Neurometrix Inc shares they owned while 1 reduced their positions. 1 funds bought stakes while 2 increased their total positions. Institutions now own 1.57 million shares which is 3.18% more than the previous share count of 1.52 million in 2015Q2.

Sabby Management Llc holds 0.03% of its total portfolio in Neurometrix Inc, equating to 873,454 shares. Green Owl Capital Management Llc owns 23,208 shares representing 0.02% of their total US portfolio. Moreover, American International Group Inc has 0% of their total portfolio invested in the company, equating to 13 shares. The California-based Blackrock Institutional Trust Company N.A. has a total of 0% of their portfolio invested in the stock. Colony Group Llc, a Massachusetts-based fund reported 5 shares owned.

NeuroMetrix, Inc. is a health-care firm that develops wearable medical technology and point-of-care tests that help patients and physicians manage chronic pain, nerve diseases, and sleep disorders. The company has a market cap of $7.92 million. The Firm is engaged in product development, manufacturing, regulatory affairs and compliance, sales and marketing, and customer support. It currently has negative earnings. The Firm sells medical devices and after-market consumable products and accessories.