Proceeds for commercialization, payoff of $1.75 million note to Lambda
By Toni Weeks
San Luis Obispo, Calif., Dec. 18 – Nephros, Inc. said it raised $3 million through a fully subscribed rights offering.
The company issued a total of 5 million common shares to holders of subscription rights who validly exercised their subscription rights and paid the subscription price in full, including the exercise of an oversubscription privilege. The price per share of $0.60 is a 25% discount to the closing share price of $0.80 on Nov. 7.
The company began the rights offering on Nov. 10, at which time the company distributed to holders of its common stocks and/or warrants as of Nov. 5 one non-transferable subscription right for each share of common stock or each common share underlying a warrant.
Each subscription right enabled its holder to purchase 0.11901 common shares at the $0.60 subscription price.
Holders who exercised their rights in full could purchase additional shares that remain unsubscribed at the expiration of the rights offering.
Lambda Investors LLC, Nephros’ largest shareholder, had committed to purchase any remaining shares following the expiration date, which was 5 p.m. ET on Dec. 15, but shareholders purchased all the available shares.
A portion of the proceeds was used to repay the $1.75 million note issued in August to Lambda. Remaining proceeds will be used for commercialization of the company’s liquid purification filters and hemodiafiltration systems.
Nephros is a River Edge, N.J., commercial-state medical device company.
| Issuer: | Nephros, Inc.
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| Issue: | Common stock
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| Amount: | $3 million
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| Shares: | 0.11901 common shares for each common share or whole warrant owned, for a total of 5 million shares issued
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| Price: | $0.60
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| Warrants: | No
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| Pricing date: | Nov. 10
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| Settlement date: | Dec. 18
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| Stock symbol: | OTCBB: NEPH
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| Stock price: | $0.80 at close Nov. 7
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| Market capitalization: | $17.68 million
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