Autonomix Medical raises $2.5 million through warrant exercise deal

THE WOODLANDS, Texas - Autonomix Medical, Inc. (NASDAQ:AMIX), whose stock has surged nearly 29% in the past week according to InvestingPro data, announced Tuesday it has entered into agreements with certain warrant holders for the immediate exercise of outstanding warrants at a reduced price of $1.723 per share.

The medical device company, which focuses on nerve-targeted treatments and currently has a market capitalization of just $5.1 million, said the transaction involves warrants to purchase up to 1,477,596 shares of common stock originally issued in November 2024. The gross proceeds from the warrant exercise are expected to total approximately $2.5 million before deducting placement agent fees.

In exchange for the immediate cash exercise, Autonomix will issue new unregistered warrants to purchase an equivalent number of common shares at the same $1.723 exercise price. These new warrants will be immediately exercisable and valid for five and a half years from issuance.

Some warrant holders opted to prepay $1.722 of the reduced exercise price and will receive amended warrants with a $0.001 exercise price for the prepaid portion.

Ladenburg Thalmann & Co. Inc. is serving as the placement agent for the transaction, which is expected to close on or about July 23, subject to customary closing conditions.

Autonomix intends to use the net proceeds for working capital and general corporate purposes, according to the press release statement.

The company is developing a catheter-based microchip sensing array technology aimed at diagnosing and treating diseases involving the peripheral nervous system. InvestingPro analysis reveals the company’s financial health score is currently weak at 1.71, with rapid cash burn being a key concern. Its initial focus is on treating pain associated with pancreatic cancer. Want deeper insights? InvestingPro offers 8 additional key tips about AMIX’s financial position and market performance.

The new warrants were offered through a private placement exempt from registration requirements, and Autonomix has agreed to file a registration statement covering the resale of shares issuable upon exercise of these new warrants.

In other recent news, Autonomix Medical Inc. has been granted two new patents by the United States Patent and Trademark Office. One patent covers the "Smart Torquer" technology, which is designed to enhance the manipulation of intravascular devices during minimally invasive procedures by integrating electronic components for mechanical control and data communication. Another patent has been issued for systems and methods related to neurological evaluation and modification, focusing on locating, monitoring, and mapping electrophysiological signals during neuromodulation or denervation procedures. This technology includes tools for accessing small vessels to treat cancerous tumors and associated pain.

Additionally, Autonomix Medical announced plans to expand its clinical trial program to include a broader range of visceral cancers. The Ministry of Health of the Republic of Uzbekistan has authorized the company to proceed with the follow-on phase of its trial, known as PoC 2, which will evaluate the safety and efficacy of its proprietary ablation technology for cancer pain mitigation. The company is set to begin patient enrollment in June 2025, following promising results from its initial proof-of-concept trial targeting severe pancreatic cancer pain. The earlier study showed significant pain reduction and improved quality of life for late-stage pancreatic cancer patients, along with a decrease in opioid use.

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