Why Are InspireMD Shares Surging Today

  • InspireMD Inc. NSPR shares are surging Monday after the company said it had inked a pact with healthcare-focused institutional investors that have agreed to provide up to $113.6 million in gross proceeds through a private placement.
  • "Advancing our growing product pipeline, including our new CGuard Prime Transfemoral (CAS) delivery system along with our SwitchGuard trans carotid (TCAR) neuroprotection system (NPS), positions our company to serve the entire carotid revascularization market, continuing our mission of delivering implant focused patient outcomes," said CEO Marvin Slosman.
  • The financing is being led by Marshall Wace with participation from OrbiMed, Rosalind, Nantahala, Soleus, Velan and certain InspireMD Board members.
  • The net proceeds from the private placement will be used to expand manufacturing capabilities and new product launches, including CGuard Prime and SwitchGuard in the U.S. and the EU, as well as for working capital and other general corporate purposes.
  • The deal includes initial upfront funding of $42.2 million with up to an additional $71.4 million tied to the exercise of milestone-driven warrants.
  • Under the private placement, the company has agreed to issue an aggregate of 25.83 million shares of common stock (or prepaid warrants).
  • The company will also issue four series of unregistered warrants to purchase an aggregate of 51.66 million shares of common stock for a purchase price of $1.6327 per share.
  • The company is scheduled to release its first-quarter FY23 results on May 16, 2023.
  • Price Action: NSPR shares are up by 20% to $1.74 in the trading session on the last check Monday.
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