Aclarion, Inc. (NASDAQ:ACON), a Delaware-incorporated medical laboratory services provider, has amended its equity line agreement with White Lion Capital, LLC, extending its duration and altering share pricing methods. The amendment, effective today, extends the equity line's expiration from December 31, 2024, to December 31, 2025.
Under the original agreement dated October 9, 2023, Aclarion had the right to require White Lion to purchase up to $10 million worth of new shares, with around $6.8 million remaining as of September 30, 2024. The amendment introduces two new pricing options for shares sold under the agreement and issues White Lion 560,915 commitment shares.
The new pricing options include an Accelerated Purchase Notice, where shares are priced at 85% of the lowest traded price in the 15 minutes before the notice, and a Pre-Market Purchase Notice, priced at the lowest traded price between 12:00 am and 6:30 am Pacific Time on the notice date. These are in addition to the existing Fixed, VWAP, and Rapid Purchase Notices.
In other recent news, Aclarion, Inc. is facing the risk of being delisted from the Nasdaq Stock Market due to non-compliance with listing requirements. The company has responded by presenting a plan to regain compliance to a Nasdaq hearing panel, including a stockholder-approved proposal for a potential reverse stock split. Aclarion has also initiated a $10 million at-the-market offering in agreement with Ascendiant Capital Markets, who has rated the company's stock as a 'Buy'.
In terms of research, Aclarion has unveiled findings from a study using its Nociscan platform to investigate the role of MRI-detected spinal abnormalities in chronic low back pain. The company has also secured its 23rd U.S. patent, relating to techniques that enhance the quality of spectral data from Magnetic Resonance Spectroscopy exams.
In other developments, three of the four largest private insurance payers in the UK have agreed to cover Aclarion's Nociscan platform. The company has also raised $290,000 through a common stock sale and exchanged approximately $930,000 of outstanding debt for equity.
InvestingPro Insights
Aclarion's recent amendment to its equity line agreement comes at a time when the company faces significant financial challenges. According to InvestingPro data, Aclarion's market capitalization stands at a modest $1.89 million, reflecting its small-cap status. The company's financial performance has been concerning, with revenue declining by 41.41% over the last twelve months as of Q3 2024, and a negative gross profit margin of -69.45%.
InvestingPro Tips highlight that Aclarion holds more cash than debt on its balance sheet, which could provide some financial flexibility as it navigates its current challenges. However, the company is not profitable over the last twelve months, and analysts do not anticipate profitability this year. These factors may explain the company's need to extend and modify its equity line agreement with White Lion Capital.
The stock price has performed poorly, with a year-to-date total return of -94.34% as of the latest data. This significant decline aligns with another InvestingPro Tip indicating that Aclarion's price has fallen substantially over the last year and five years.
For investors considering Aclarion's potential, it's worth noting that InvestingPro offers 11 additional tips for this stock, providing a more comprehensive analysis of the company's financial health and market position.
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