Nexalin Technology Announces Closing of Previously Announced $5.0 Million Underwritten Public Offering

Rhea-AI Summary

Nexalin Technology (NASDAQ: NXL), a company specializing in Deep Intracranial Frequency Stimulation (DIFS™) technology, has successfully closed its previously announced underwritten public offering. The company issued 3,850,000 shares of common stock at $1.30 per share, raising approximately $5.0 million in gross proceeds before deducting underwriting costs and other expenses.

The offering was conducted through Maxim Group LLC as the sole book-running manager, under an effective shelf registration statement on Form S-3. The securities were offered through a prospectus and prospectus supplement, with documentation available on the SEC's website.

Positive

• None.

Negative

• Potential dilution for existing shareholders due to issuance of 3,850,000 new shares

Insights

Financial Analyst

Nexalin raised $5M through public offering of 3.85M shares at $1.30/share, completing previously announced financing transaction.

Nexalin Technology has successfully closed its previously announced public offering, raising $5 million in gross proceeds by selling 3,850,000 shares of common stock at $1.30 per share. This financing was executed through an underwritten public offering with Maxim Group LLC serving as the sole book-running manager.

The timing of this transaction is notable - the shelf registration was filed on April 23, 2025, declared effective on April 29, 2025, and the offering closed by May 6, 2025, indicating an efficient execution process. The registration-to-closing window of less than two weeks suggests the company and underwriters moved quickly to secure this funding.

For existing shareholders, this offering represents dilution as new shares have been issued. However, the press release doesn't provide context regarding the company's previous share count, so the precise dilutive impact cannot be determined from this announcement alone.

The press release doesn't specify how Nexalin plans to use these funds, which is a critical detail investors would typically want to know. Without clarification on intended use of proceeds, it's difficult to assess how this capital might impact the company's operations or growth trajectory in the Deep Intracranial Frequency Stimulation space.

This financing comes after certain regulatory steps were completed, including an effective shelf registration (Form S-3) that allows the company to issue securities. The shelf registration process gives Nexalin flexibility to access capital markets when needed, and this offering represents a partial use of that capability.

HOUSTON, May 06, 2025 (GLOBE NEWSWIRE) --  Nexalin Technology, Inc. (Nasdaq: NXL; NXLIW) (the “Company” or “Nexalin”), the leader in Deep Intracranial Frequency Stimulation (DIFS™) of the brain, today announced the closing of its previously announced underwritten public offering of 3,850,000 shares of its common stock at a public offering price of $1.30 per share. The gross proceeds from the offering to Nexalin were approximately $5.0 million, before deducting underwriting discounts and commissions and other offering expenses.

Maxim Group LLC acted as sole book-running manager for the offering.

The public offering was made pursuant to an effective shelf registration statement on Form S-3 (File No. 333-286711), previously filed with the U.S. Securities and Exchange Commission (the “SEC”) on April 23, 2025, and declared effective on April 29, 2025. The shares of common stock were offered only by means of a prospectus and prospectus supplement that form part of the effective registration statement. A final prospectus supplement describing the terms of the public offering has been filed with the SEC and is available on the SEC’s website located at www.sec.gov. Electronic copies of the final prospectus supplement and accompanying prospectus relating to the public offering may also be obtained by contacting Maxim Group LLC, 300 Park Avenue, New York, NY 10022, or by telephone at (212) 895-3745.

This press release does not constitute an offer to sell or the solicitation of an offer to buy these 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 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 Statement

This press release contains forward-looking statements that are based on the Company’s beliefs and assumptions and on information currently available to the Company on the date of this press release. These forward-looking statements involve substantial risks and uncertainties. Any statements in this press release other than statements of historical fact, including statements about the Company’s future expectations, plans and prospects, constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include any statements about the Company’s strategy, operations and future expectations and plans and prospects for the Company, and any other statements containing the words “anticipate,” “believe,” “estimate,” “expect,” “intend”, “goal,” “may”, “might,” “plan,” “predict,” “project,” “seek,” “target,” “potential,” “will,” “would,” “could,” “should,” “continue,” and similar expressions. Such forward-looking statements involve substantial risks and uncertainties that could cause the Company’s financial and operating results, performance or achievements to differ significantly from those expressed or implied by the forward-looking statements, including the factors discussed in the “Risk Factors” section contained in the quarterly and annual reports that the Company files with the Securities and Exchange Commission. Any forward-looking statement represents the Company’s views only as of the date of this press release. The Company anticipates that subsequent events and developments may cause its views to change. While the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so except as required by law even if new information becomes available in the future. 

Investor Contacts:

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

FAQ

How much did Nexalin Technology (NXL) raise in their May 2025 public offering?

Nexalin Technology raised approximately $5.0 million in gross proceeds through an underwritten public offering of 3,850,000 shares at $1.30 per share.

What was the price per share for Nexalin's (NXL) May 2025 public offering?

The public offering price was $1.30 per share.

Who was the book-running manager for Nexalin's (NXL) May 2025 public offering?

Maxim Group LLC acted as the sole book-running manager for the offering.

How many shares did Nexalin Technology (NXL) issue in their May 2025 offering?

Nexalin Technology issued 3,850,000 shares of common stock in the offering.