Nexalin Technology, which is developing non-invasive neurostimulation devices for various disorders, raised $10 million by offering 2.3 million units at $4.15, below the revised range of $6 to $7. Each unit still consists of one share of common stock and one warrant, exercisable at the IPO price. The company offered 0.8 million more units than anticipated. It originally planned to offer 1.7 million shares at $5 to $7, before lowering the offering and adding warrants this past April and narrowing the range the following May.
Because the company offered units with warrants attached and priced at a market cap less than $50 million, Nexalin will be excluded from Renaissance Capital's 2022 IPO stats.
Nexalin has developed an easy-to-administer neurostimulation medical device, referred to as Generation 1 or Gen-1, that utilizes bioelectronic medical technology to treat anxiety and insomnia. Its original Gen-1 devices are cranial electrotherapy stimulation (CES) devices that emit waveform at 4 milliamps during treatment and are presently classified by the FDA as a Class II device.
The Gen-1 device has been utilized in clinical settings in the US, but due to the FDA's reclassification of CES devices in 2019, Nexalin is required to file a new 510(k) Application to be approved for the sales and marketing of its devices for the treatment of anxiety and insomnia. The treatment of depression will require a Class III device and require a new premarket approval application.
Nexalin Technology plans to list on the Nasdaq under the symbol NXL. Maxim Group LLC acted as sole bookrunner on the deal.
