NeurAxis Announces $5.0 Million Registered Direct Offering

Rhea-AI Summary

NeurAxis (NYSE: NRXS), a medical technology company focused on neuromodulation therapies, has announced a $5.0 million registered direct offering of 1,538,461 common stock shares priced at $3.25 per share. The offering, expected to close around May 22, 2025, is being conducted through Craig-Hallum Capital Group as the exclusive placement agent.

The company plans to use the net proceeds for working capital and general corporate purposes. The offering is made under a shelf registration statement filed with the SEC in December 2024 and declared effective in February 2025.

Positive

• Raises $5.0 million in additional capital for working capital and corporate purposes

Negative

• Potential dilution for existing shareholders with the issuance of 1,538,461 new shares
• Offering price of $3.25 per share indicates a discount to market price

Insights

Financial Analyst

NeurAxis raising $5M through share offering at $3.25, likely diluting current shareholders while strengthening working capital position.

NeurAxis is conducting a $5.0 million registered direct offering by selling 1,538,461 shares at $3.25 per share. This offering is structured as "at-the-market" under NYSE American rules, suggesting the pricing aligns with recent trading values. Craig-Hallum Capital Group is serving as the exclusive placement agent, with the transaction expected to close around May 22.

The company is planning to use proceeds for working capital and general corporate purposes, indicating a focus on operational sustainability rather than a specific strategic initiative. This suggests NeurAxis may be strengthening its financial position to support ongoing commercialization of its neuromodulation therapies for chronic conditions.

What's particularly noteworthy is the potential dilutive effect. With $5.0 million raised through 1,538,461 new shares, existing shareholders will experience ownership dilution. The company's decision to raise capital through equity rather than debt indicates a preference for improving the balance sheet without adding interest obligations, though at the cost of dilution.

The timing aligns with their previously filed S-3 shelf registration from December 2024, which became effective in February 2025, showing this capital raise was likely planned for some time. For a medical technology company commercializing therapies, this additional capital could help sustain operations during the typically lengthy pathway to profitability that characterizes the medtech sector.

CARMEL, Ind., May 21, 2025 (GLOBE NEWSWIRE) -- NeurAxis, Inc. (“NeurAxis,” or the “Company”) (NYSE American: NRXS), a medical technology company commercializing neuromodulation therapies addressing chronic and debilitating conditions in children and adults, today announced that it has entered into definitive agreements for the purchase and sale of an aggregate of 1,538,461 shares of its common stock at a purchase price of $3.25 per share in a registered direct offering priced at the market under NYSE American rules.

The offering is expected to close on or about May 22, 2025, subject to the satisfaction of customary closing conditions.

Craig-Hallum Capital Group is acting as the exclusive placement agent for the offering.

The gross proceeds from the offering are expected to be approximately $5.0 million, before deducting placement agent fees and other offering expenses payable by the Company. NeurAxis intends to use the net proceeds from the offering for working capital and general corporate purposes.

A shelf registration statement on Form S-3 (File No. 333-283798) relating to the securities being offered was originally filed with the U.S. Securities and Exchange Commission (the “SEC”) on December 13, 2024, and declared effective on February 11, 2025. The offering is being made only by means of a prospectus supplement and accompanying prospectus that form a part of the shelf registration statement. The final prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC and will be available on the SEC’s website at www.sec.gov. Electronic copies of the final prospectus supplement and accompanying prospectus, when filed, may be obtained on the SEC’s website at www.sec.gov or by contacting Craig-Hallum Capital Group LLC at 323 North Washington Avenue, Suite 300, Minneapolis, Minnesota 55401, Attention: Equity Capital Markets, by telephone at 612-334-6300, or by email at prospectus@chlm.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or 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 jurisdiction.

About NeurAxis, Inc.

NeurAxis, Inc., is a medical technology company focused on neuromodulation therapies to address chronic and debilitating conditions in children and adults. NeurAxis is dedicated to advancing science and leveraging evidence-based medicine to drive adoption of its IB-Stim™ therapy, which is its proprietary Percutaneous Electrical Nerve Field Stimulation (PENFS) technology, by the medical, scientific, and patient communities. IB-Stim™ is FDA cleared for functional abdominal pain associated with irritable bowel syndrome (IBS) in adolescents 8-21 years old. Additional clinical trials of PENFS in multiple pediatric and adult conditions with large unmet healthcare needs are underway. For more information, please visit http://neuraxis.com.

Forward-Looking Statements

Certain statements in this press release are 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. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements are based on management’s current assumptions and expectations of future events and trends, which affect or may affect the Company’s business, strategy, operations or financial performance, and actual results and other events may differ materially from those expressed or implied in such statements due to numerous risks and uncertainties. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. There are a number of important factors that could cause actual results, developments, business decisions or other events to differ materially from those contemplated by the forward-looking statements in this press release. These factors include, among other things, the conditions in the U.S. and global economy, the trading price and volatility of the Company’s stock, public health issues or other events, the Company’s compliance with applicable laws, the results of the Company’s clinical trials and perceptions thereof, the results of submissions to the FDA, the results of the shareholder vote to enable the issuance of the Preferred Stock, and factors described in the Risk Factors section of NeurAxis’s public filings with the Securities and Exchange Commission (SEC). Because forward-looking statements are inherently subject to risks and uncertainties, you should not rely on these forward-looking statements as predictions of future events. These forward-looking statements speak only as of the date of this press release and, except to the extent required by applicable law, the Company undertakes no obligation to update or revise these statements, whether as a result of any new information, future events and developments or otherwise.

Contacts:

Company
NeurAxis, Inc.
info@neuraxis.com

Investor Relations
Lytham Partners
Ben Shamsian
646-829-9701
shamsian@lythampartners.com

FAQ

What is the size and price of NeurAxis (NRXS) May 2025 stock offering?

NeurAxis is offering 1,538,461 shares of common stock at $3.25 per share, aiming to raise $5.0 million in gross proceeds.

When will the NeurAxis (NRXS) registered direct offering close?

The offering is expected to close on or about May 22, 2025, subject to customary closing conditions.

How will NeurAxis (NRXS) use the proceeds from the $5.0 million offering?

NeurAxis intends to use the net proceeds from the offering for working capital and general corporate purposes.

Who is the placement agent for the NeurAxis (NRXS) May 2025 offering?

Craig-Hallum Capital Group is acting as the exclusive placement agent for the offering.