electroCore, Inc. (NASDAQ:ECOR) (“electroCore” or the “Company”), a commercial-stage bioelectronic medicine and wellness company, today announced that it has agreed to issue and sell to certain institutional and accredited investors an aggregate of 1,675,914 registered shares of common stock (or common stock equivalents) and unregistered warrants to purchase up to an aggregate of 837,955 shares of common stock. Each share of common stock is being sold together with one-half of one warrant at a combined effective offering price of $4.4125 per share and related warrant. The warrants will be exercisable commencing six months after the date of issuance at a price of $4.35 per share and will expire five years after they first become exercisable.
In a separate concurrent private placement, electroCore has also agreed to issue and sell 169,968 of its shares of common stock (or common stock equivalents) and warrants to purchase up to an aggregate of 84,982 shares of common stock, to certain of the Company’s officers and directors. Each share of common stock is being sold together with one-half of one warrant at a combined effective offering price of $4.4125 per share and related warrant. The warrants issued and sold to insiders will have the same terms as the warrants sold to the institutional and accredited investors.
The aggregate gross proceeds to the Company from the issuance and sale of the securities described above is expected to be approximately $8.145 million, before deducting the placement agent’s fees and expenses, and other offering expenses payable by electroCore. The Company currently intends to use the net proceeds from these sales for sales and marketing, working capital and general corporate purposes.
Paulson Investment Company, LLC, is acting as the exclusive placement agent in connection with the sale of the securities described above to the institutional and accredited investors.
The issuance and sale of the securities described above were priced “at market” under Nasdaq rules. The offerings described above are expected to close on or about August 2, 2023, subject to the satisfaction of customary closing conditions.
