NeuroOne Pockets Over $5M, Inks OneRF Distribution Deal

NeuroOne Medical Technologies has closed a $2.65 million private placement and access to an additional $3 million credit facility.
 
The company also revealed it has signed a non-binding term sheet to distribute its OneRF ablation system with an undisclosed medical technology firm. The partnership, NeuroOne said, entails negotiating and executive documentation, due diligence, and other closing conditions typical of such an agreement.
 
The OneRF ablation system earned U.S. Food and Drug Administration (FDA) 510(k) clearance in December 2023. The system is indicated for creation of radiofrequency (RF) lesions in nervous tissue for functional neurosurgical procedures.
 
The device is NeuroOne’s first with a therapeutic indication and its third FDA 510(k)-cleared device. OneRF uses the company’s sEEG electrodes to both record brain activity and allow ablation of nerve tissue. The ablation procedure was granted a new ICD-10-PCS code from the Centers for Medicare and Medicaid Services (CMS) last month, as well.
 
“Today’s financings, $3 million of which is minimally dilutive to our shareholders, puts our company in a strong position to operate our business and move forward with a potential partnership for our OneRF Ablation System, which we anticipate will close by the end of the third calendar quarter,” said NeuroOne CEO Dave Rosa.
 
NeuroOne’s private placement was composed of almost three million shares of its common stock, in addition to warrants to purchase 2.2 million shares of common stock at a price of $0.90 per unit. Each unit is made of a share of common stock and warrant to buy 0.75 shares of common stock.
 
Warrants have an exercise price of $1.19 per common stock share and are exercisable for up to three years from issuance. Current institutional investors and insiders were included in the placement. NeuroOne also gained a $3 million credit line from Growth Opportunity Funding LLC.
 
The company said it plans to use the proceeds to fund operations, working capital, and general corporate purposes. These include expanding OneRF’s limited commercial launch efforts, product development for a new ablation indication, and completing the diligence process with a possible strategic partner.