InspireMD Puts up Offering, Stocks Collapse

InspireMD Inc (NYSE:NSPR) saw its shares plummet Friday, the day after pricing its 2.77-million-unit underwritten public offering at $1.80 per unit.

The Tel Aviv-based InspireMD is the developer of the CGuard™ Embolic Prevention System (EPS) for the prevention of stroke caused by carotid artery disease.

InspireMD expects to receive aggregate gross proceeds of approximately $5 million from the offering, assuming no exercise of the underwriter’s option to purchase additional securities. Each unit contains one share of common stock (or common stock equivalent) and one Series E warrant to purchase one share of common stock at an exercise price of $1.80 per share.

In connection with the offering, InspireMD has granted the underwriter a 30-day option to purchase up to an additional 416,666 shares of common stock and/or Series E warrants to buy up to 416,666 shares of common stock. The offering is expected to close on or about September 24, subject to customary closing conditions.

InspireMD intends to use the net proceeds of this offering for research and development, capital expenditures, working capital, sales and marketing and other general corporate purposes.

At a conference in Paris earlier this month, data was presented for the first time on a patient-level mesh stent metanalysis that included 556 symptomatic and asymptomatic carotid artery disease patients from four trials.

The results demonstrate superiority of CGuard™ EPS in clinical safety and efficacy as compared to competitor devices, both first generation stents and second-generation double layer or mesh covered devices

Shares faltered Friday $1.12, or 43.1% to $1.48