Aclarion, Inc. (NASDAQ:ACON), a provider of medical laboratory services, has entered into a sales agreement to potentially sell up to $10 million of its common stock through an at-the-market offering, according to a recent filing with the Securities and Exchange Commission (SEC).
On Monday, Aclarion signed an At-the-Market Issuance Sales Agreement with Ascendiant Capital Markets, LLC, which will act as the sales agent. This arrangement allows the company to sell its common stock from time to time directly on the Nasdaq Stock Market.
The company has also filed a prospectus supplement with the SEC, indicating an initial offering of shares worth up to $1,075,000, subject to regulatory limitations. The offering is part of a shelf registration statement that was declared effective by the SEC on September 23, 2024.
Ascendiant Capital Markets will endeavor to sell the shares according to Aclarion's instructions and within legal and market requirements. Aclarion has set parameters for the sale, including quantity, timing, and minimum pricing.
The agreement stipulates that Ascendiant will receive a commission of up to 3.0% of the gross proceeds from the sale of shares. Aclarion will also reimburse certain expenses to Ascendiant and has agreed to provide customary indemnification rights.
Aclarion, which was formerly known as Nocimed, Inc., is not obligated to sell any shares under this agreement and may suspend the offering at any time. Both Aclarion and Ascendiant have the right to terminate the agreement under certain conditions.
The company's decision to initiate an at-the-market offering provides a flexible mechanism to raise capital as needed, while allowing it to control the timing and amount of stock sold.
In other recent news, Aclarion, Inc. has received approval from its shareholders for a reverse stock split, a strategic move that could occur within a year. This comes as Aclarion also raised $290,000 through a common stock sale and exchanged approximately $930,000 of outstanding debt for equity, issuing 930 shares of Series B convertible preferred stock to accredited investors. However, the company has been notified by The Nasdaq Stock Market LLC of a non-compliance issue regarding the minimum stockholders' equity required for continued listing on the exchange.
On the technological front, Aclarion has secured its 23rd U.S. patent, relating to techniques that enhance the quality of spectral data from Magnetic Resonance Spectroscopy (MRS) exams. Ascendiant Capital initiated coverage on Aclarion's stock, rating it a 'Buy' and setting a price target of $1.60.
In other developments, three of the four largest private insurance payers in the UK have agreed to cover Aclarion's Nociscan platform, a tool designed to aid physicians in identifying the source of chronic low back pain. Aclarion has also entered into a strategic partnership with ATEC, a major spine implant company, to leverage pre-surgical data for improved patient outcomes.
InvestingPro Insights
In light of Aclarion, Inc.'s (NASDAQ:ACON) recent move to potentially raise capital through an at-the-market offering, it may be beneficial for investors to consider the company's financial health and market performance. According to InvestingPro data, Aclarion has a market capitalization of just $1.59 million and has experienced a significant revenue decline of 35.23% over the last twelve months as of Q2 2024. The company's stock price has also been under pressure, with a one-year total return of -97.03%.
An InvestingPro Tip highlights that Aclarion holds more cash than debt on its balance sheet, which could provide some financial flexibility in its operations. However, another InvestingPro Tip indicates that the company suffers from weak gross profit margins, which is reflected in the negative gross profit of -$0.03 million over the last twelve months as of Q2 2024.
Investors considering Aclarion's stock may want to explore the full suite of InvestingPro Tips available, which includes additional insights into the company's financial metrics and market performance. For a more comprehensive analysis, there are 14 InvestingPro Tips available for Aclarion, Inc. at https://www.investing.com/pro/ACON, providing a deeper look into the company's prospects.
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