Aclarion, Inc. (NASDAQ:ACON), a medical laboratory services provider, has entered into agreements that could increase its capital by $290,000, the company disclosed in a recent SEC filing. On Monday, the Delaware-based company signed a subscription agreement with certain accredited investors to sell 1,000,000 shares of common stock at $0.29 per share.
The shares were sold directly in the market under Nasdaq's at-the-market offering rules, based on Aclarion's Form 1-A, which was filed with the SEC on June 11, 2024, and qualified on June 24, 2024. The transaction did not involve placement agents or commission fees.
In a concurrent development, Aclarion also issued warrants to the same investors for the purchase of up to 400,000 shares of common stock. These warrants are exercisable beginning February 27, 2025, at an initial price of $0.29 per share and have a five-year term. The warrants allow for cashless exercise, which could be beneficial for the holders depending on the company's stock performance.
The company retains the option to raise additional funds up to approximately $29.39 million under the same terms through the Offering Statement. However, as of now, Aclarion has not entered into any additional agreements for such sales and there is no assurance that any further transactions will occur.
The securities sold have not been registered under the Securities Act of 1933 and were offered based on exemptions from registration requirements. The shares were sold in accordance with Regulation A and the warrants under Section 4(a)(2) of the Securities Act.
This move to bolster its capital comes as Aclarion, formerly known as Nocimed, Inc., continues to navigate the competitive landscape of medical laboratory services. The company's business address is in Broomfield, Colorado, and it operates under the IRS Employer Identification No. 47-3324725.
In other recent news, Aclarion, Inc. faces potential delisting from Nasdaq due to an equity shortfall. The company has been granted until late August 2024 to appeal the decision.
Concurrently, Aclarion has been working towards financial stability, issuing 930 shares of Series B convertible preferred stock to accredited investors, reducing its outstanding debt by approximately $930,000. The company also raised $116,000 through the sale of 400,000 shares of its common stock.
In terms of technological advancements, Aclarion secured its 23rd U.S. patent, relating to techniques that enhance the quality of spectral data from Magnetic Resonance Spectroscopy (MRS) exams. This technology is a critical part of Aclarion's Nociscan solution, which helps physicians identify the source of chronic low back pain non-invasively.
The company also unveiled its updated Nociscan 2.7 platform, including user-friendly features and additional scalability and security measures.
Ascendiant Capital initiated coverage on Aclarion's stock, rating it a 'Buy' and setting a price target of $1.60. The firm pointed to the potential benefits of Aclarion's proprietary NOCISCAN technology, which aids in the diagnosis and treatment of chronic low back pain.
InvestingPro Insights
Aclarion, Inc.'s recent capital increase through a direct stock offering underscores the importance of understanding the company's financial health and market position. According to InvestingPro data, Aclarion has a market capitalization of just over $2 million, reflective of its status as a niche player in the medical laboratory services industry. The company's revenue for the last twelve months as of Q2 2024 stands at $0.05 million, with a significant decline in revenue growth of -35.23% during the same period. This contraction is mirrored in the company's gross profit margin, which is deeply negative at -51.53%, indicating challenges in maintaining profitability.
InvestingPro Tips suggest that Aclarion holds more cash than debt on its balance sheet, which could provide some financial flexibility. However, the company is not expected to be profitable this year, with analysts anticipating a drop in net income. The stock has also been performing poorly, trading near its 52-week low and showing a significant price decline over the last year. For those considering an investment in Aclarion, these factors should be weighed carefully. It's worth noting that there are over 11 additional InvestingPro Tips available, offering deeper insights for potential investors. For more detailed analysis, visit https://www.investing.com/pro/ACON.
These financial metrics and expert tips can help investors understand Aclarion's current market standing and future prospects, especially in the wake of its recent capital-raising efforts.
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