NeurAxis, a leading medical technology company, has announced changes to its initial public offering (IPO) plans. The company has gained FDA approval for its groundbreaking therapy designed to treat abdominal pain associated with Irritable Bowel Syndrome (IBS) in adolescents aged 11 to 18 years old.
Revised Offering Details
According to a filing with the Securities and Exchange Commission, NeurAxis now intends to offer 1.7 million shares at a price of $6 each. Additionally, selling shareholders will offer 2.8 million shares. This marks a deviation from the company’s previous plan of offering 937,500 shares priced at $8, with selling shareholders offering 1.8 million shares.
NYSE Listing and Underwriter
NeurAxis has submitted an application to list on the New York Stock Exchange under the ticker symbol ‘NRXS.’ The sole underwriter for this deal is Alexander Capital L.P.
Utilization of Proceeds
The proceeds from the IPO will be allocated towards essential areas such as research and development (R&D), sales and marketing initiatives, executive officer contract payments, debt repayment, and general corporate purposes.
With a net loss of $2.2 million for the quarter ending March, NeurAxis experienced a wider loss compared to the $500,000 loss recorded in the same period the previous year. The company acknowledges its accumulated deficit of $36.1 million as of March 31, 2023. In their audit opinion, the company’s auditors have expressed significant doubts about NeurAxis’s ability to sustain operations.
The Renaissance IPO ETF has witnessed a substantial gain of 41% since the beginning of the year. In contrast, the S&P 500 has experienced an 18% gain during the same period.