Medical technology developer Aclarion (ACON) has reduced its proposed initial public offering for a second time to $11 million, down 77% from its original target of $48.3 million.
In its latest filing, Aclarion said it now plans to offer 2 million units priced between $4.50 and $6.50 per unit, which would net $11 million if the price was in in the middle of the range. Each unit will consist of one share plus a warrant to purchase one share.
The underwriters will be granted a 45-day option to purchase up to 300,000 additional shares and/or warrants. Maxim Group acts as bookrunner.
Aclarion expects the transaction to generate net proceeds of $9.7 million, or $11.2 million if the underwriter’s option is exercised in full and the units are priced at 5.50 dollars. He plans to use $2 million of the proceeds to withdraw a promissory note issued in June 2021 that bears an interest rate of 33% per annum.
In March, Aclarion announced plans to offer 2.27 million units priced between $4.50 and $6.50 each. If the price was $5.50, the deal would have made around $12.5 million.
The medical technology company was originally looking to raise up to $48.3 million, according to a January filing.
Aclarion has developed a software product called NOCISCAN-LS that helps surgeons identify spinal discs that are causing pain in patients with lower back pain. The product is used to process data collected by MR spectroscopy.
For a more in-depth look at Aclarion, see “Aclarion Aims for US IPO to Fund Development Efforts” by SA contributor Donovan Jones.