NMT Medical completes private placement of common stock and warrants for $5.8M

Feb 17 2010

NMT Medical, Inc. (NASDAQ: NMTI) today announced that it has completed a private placement of its common stock and warrants to purchase additional shares of common stock to existing and new stockholders for aggregate proceeds of approximately $5.8 million. The proceeds will be used to fund NMT’s ongoing clinical trials and development programs, primarily its pivotal patent foramen ovale (PFO)/stroke and transient ischemic attack (TIA) trial in the United States, CLOSURE I.

“This transaction demonstrates the level of confidence that investors have in NMT and our ongoing clinical efforts”

Under the terms of the private placement, NMT agreed to sell to the group approximately 2.7 million shares of its common stock at a purchase price of $2.15 per share for total proceeds of $5.8 million. Included in the financing terms were warrants exercisable for an aggregate of an additional 2.1 million shares of NMT’s common stock with an exercise price of $2.90 per share.

NMT filed a registration statement with the U.S. Securities and Exchange Commission, which was declared effective on February 16, 2010, covering the resale of the shares of common stock issued in the private placement and the shares of common stock issuable upon valid exercise of the warrants issued in the private placement.

“This transaction demonstrates the level of confidence that investors have in NMT and our ongoing clinical efforts,” said President and Chief Executive Officer Frank Martin. “The financing affords us additional flexibility and enables us to continue to pursue our primary near-term goal: completing CLOSURE I. We believe that the $5.8 million in proceeds, along with the $4 million available under our existing credit facility and our current cash balance, provides us with sufficient funds to complete the CLOSURE I trial and to bring the STARFlex® device to market in the U.S., assuming it is approved for the stroke and transient ischemic attack (TIA) indication by the U.S. Food and Drug Administration (FDA). Data analysis is currently scheduled to commence in April 2010. If the results prove positive, the Company will be in a position to submit a Pre-Market Approval (PMA) application to the FDA during the third quarter of 2010. As always, we continue to carefully manage our financial resources.”

NMT previously announced that it expects to report a balance of cash and cash equivalents at December 31, 2009 of approximately $8.9 million.

The preliminary financial information presented in this news release is unaudited and reflects the extent of NMT’s most current understanding of its financial results. Detailed results will be provided in the Company’s fourth-quarter and year-end financial results press release currently planned for the week of March 22, 2010.