InspireMD Inc (NYSEAMERICAN:NSPR) has entered into a securities purchase deal with an institutional investor for the release and sale of 750 shares of its Series ‘D’ Preferred Stock for total gross proceeds of $750,000 under planned recapitalization of the firm.
James Barry, PhD, the CEO of InspireMD, expressed that at the time of their last capital raise, they were in the initial stages of a turnaround, which restricted their funding alternatives and led in a complicated capital structure. They have since implemented against their operational plan as shown by the strong sequential and YoY sales growth of CGuard™ EPS.
Irrespective of this growth, their current capital structure has shown an impediment to enhancing shareholder value. As such, they determined to undertake a planned recapitalization. They consider these steps were required and will ultimately prove advantageous for shareholders provided the operational success they are now experiencing.
Last month, InspireMD issued preliminary report for the third quarter closing September 30, 2017. The CEO expressed that they achieved a 90% YoY jump in sales of CGuard EPS for Q3 2017. They also posted a 22% sequential jump over the second quarter of 2017. The company posted this strong performance, even though Q3 tends to be seasonally dismal.
They consider this growth is proof that their new distribution and major opinion leader plan is working. Barry added that they are hopeful that this progress will advance as the broader community of mainstream interventional cardiologists, vascular surgeons, interventional radiologists and interventional neuroradiologists commence to adopt their technology. Provided the safety benefits of the CGuard EPS, they consider that CGuard has the prospect to mark as the standard of care and to be stated by physicians as a safer option to vascular surgery for people with carotid artery disease, hence expanding the addressable market prospect.