NewCardio has closed a private placement financing with institutional and other accredited investors, including members of NewCardio’s management team and board of directors, who purchased over half of the offering.
According to the company, gross proceeds of $2.9m were generated through the issuance of 2,900 shares of a new Series C convertible preferred stock at $1,000 per share and convertible into 2.9m common shares, together with 2.9m common stock purchase warrants having an exercise price per share of $1.20.
Branislav Vajdic, CEO of NewCardio, said: “The successful completion of this transaction, despite the difficult economic conditions and the challenges small companies face in securing additional growth capital, demonstrates the confidence management, our board of directors, and these accredited investors have in NewCardio’s platform technology and the opportunities in front of us.”
The Benchmark Company served as the placement agent, who engaged Hallmark Investments as a selected dealer in this transaction.