Nuwellis Launches $6M Equity, Warrant Offering at $0.30 Price
NUWE•Nuwellis announced a $6 million public offering of 20 million shares at $0.30 per share along with Series C and D warrants covering up to 80 million shares. Shares dropped 65.2% premarket as investors weighed the dilutive impact and pending shareholder approvals for warrants and a reverse split.
1. Public Offering Details
Nuwellis is issuing 20 million common shares at $0.30 each and attaching Series C and D warrants, targeting gross proceeds of approximately $6 million before fees. Ladenburg Thalmann serves as the exclusive placement agent for the transaction.
2. Warrant Features
The Series C warrants cover up to 60 million common shares and include a one-time adjustment linked to any future reverse stock split. The Series D warrants cover 20 million shares and feature a zero-cash exercise option under specified conditions.
3. Existing Warrants Repricing
Private agreements will reduce the exercise price of previously issued warrants to $0.30 per share, aligning them with the new offering’s pricing. These repricing transactions require shareholder approval to take effect.
4. Use of Proceeds and Next Steps
Proceeds are expected to support corporate and operational requirements, including development of cardiorenal medical technologies. Warrants will become exercisable over a five-year period following shareholder approval and completion of a required reverse stock split.
