Full Press Release Details
Interventions Announces $6 Million Private Placement
$4.25 million of gross cash proceeds
of $1.75 million in secured debt
IRVINE, CA, August 31, 2016 - MRI Interventions,
Inc. (OTCQB: MRIC) today announced it has entered into a definitive securities purchase agreement with a group of investors, which
will result in gross proceeds to MRI Interventions of approximately $4.25 million, before deducting placement agents' fees
and estimated offering expenses. The securities under the securities purchase agreement consist of 851,000 units, composed of an
aggregate of approximately 851,000 shares of its common stock and warrants to purchase approximately 765,900 shares of its common
In addition to the securities purchase agreement
and the proceeds contemplated thereunder, MRI Interventions has also entered into amendments to certain of its 12% promissory notes
and warrants with two holders to provide for the automatic conversion of an aggregate principal balance of $1.75 million under
such promissory notes into 350,000 units, on the same terms and conditions being offered in the private placement.
"We are pleased to complete this financing,
and appreciate the support of the new and existing investors who participated," said Frank Grillo, CEO and President of MRI
Interventions, Inc. "The proceeds will be used for general corporate purposes, with a focus on providing growth capital for
the ongoing commercialization efforts supporting our ClearPoint Neuro Navigation System, a next generation platform
for performing real-time, MRI-guided minimally invasive neurosurgery. We are particularly pleased with the continued growth of
our business in all three areas - electrode placement, laser ablation and drug delivery. Several clinical-stage biotech companies developing life-changing
therapies for severe diseases of the central nervous system, as well as companies pursuing direct delivery of chemotherapeutic
compounds, have recognized the value of MRI-guided Convection Enhanced Delivery, enabled by our ClearPoint NeuroNavigation System."
For each unit purchased or received upon conversion,
the investor received one share of MRI Interventions' common stock and a warrant to purchase 0.90 shares of MRI Interventions'
common stock. The investors have agreed to pay a negotiated price of $5.00 per unit, and the exercise price of the warrants will
be $5.50 per share, with the warrants being exercisable for a five-year period beginning on the original date of issuance. This
private placement is expected to close on or before September 6, 2016, subject to customary closing conditions.
Brookline Capital Markets (a division
of CIM securities) acted as lead placement agent for the transaction.
The securities offered and to be sold by
MRI Interventions in the private placement have not been registered under the Securities Act of 1933 or state securities laws and
may not be offered or sold in the United States absent registration with the U.S. Securities and Exchange Commission or an applicable
exemption from such registration requirements. MRI Interventions has agreed to file a registration statement with the Securities
and Exchange Commission covering the resale of the shares of common stock, including shares of common stock issuable upon exercise
of the warrants, to be issued in the private placement. Any resale of MRI Interventions' securities under such resale registration
statement will be made only by means of a prospectus.
This press release does not
constitute an offer to sell or the solicitation of an offer to buy the securities, nor will there be any sale of the
securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of such jurisdiction.
About MRI Interventions, Inc.
Building on the imaging power of magnetic
resonance imaging, or MRI, MRI Interventions is creating innovative platforms for performing the next generation of minimally invasive
surgical procedures. The ClearPoint system, which has received 510(k) clearance and is CE marked, utilizes a hospital's existing
diagnostic or intraoperative MRI suite to enable a range of minimally invasive procedures in the brain. For more information, please
visit www.mriinterventions.com.
Forward-Looking Statements
This press release contains forward-looking
statements based upon the Company's current expectations. Forward-looking statements include, without limitation, all statements
relating to any closing(s) of, and the amount of any proceeds from, the private placement transaction described in this press release.
Forward-looking statements are subject to risks and uncertainties, and the Company's actual results and the timing of events
could differ materially from those anticipated in such forward-looking statements as a result of such risks and uncertainties,
which include, without limitation, risks and uncertainties associated with market conditions and the satisfaction of closing conditions
related to the private placement described in this press release. There can be no assurance that the Company will be able to complete
the private placement described in this press release on the terms described herein or in a timely manner, if at all. You should
not place undue reliance on forward-looking statements, which apply only as of the date of this press release. The Company's
Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 25, 2016 and Quarterly Report on Form 10-Q
filed with the Securities and Exchange Commission on August 15, 2016 contain under the heading "Risk Factors" a comprehensive
description of risks to which the Company is subject. The Company expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in its expectations
with regard thereto or any change in events, conditions or circumstances on which any such statements are based.
Contact Information:
MRI Interventions, Inc.
Harold A. Hurwitz, CFO, (949) 900-6833