Full Press Release Details
Nephros Completes Bridge Financing
RIVER EDGE, NJ, February 4, 2013 /PR Newswire-FirstCall/ --
Nephros, Inc. (OTC Bulletin Board:NEPH), a commercial stage medical device company that develops and sells high performance liquid
purification ultrafilters, today announced that the company has entered into a bridge loan and security agreement with Lambda Investors
LLC, an affiliate of Wexford Capital LP and the company's largest shareholder.
On February 4, 2013, the company issued a six-month 12% senior
secured note to Lambda Investors in the principal amount of $1,300,000. The company expects that the proceeds from the note will
allow it to fund its operations into May 2013.
Under the terms of the note, the company has undertaken to conduct
a $3 million rights offering of common stock at an anticipated offering price of $0.60 per share. All of the company's stockholders
and warrantholders will be eligible to participate in the offering on a pro rata basis based upon their proportionate ownership
of the company's common stock on a fully diluted basis. The company expects to commence the offering in March 2013 following
the filing of its Annual Report on Form 10-K. The note requires the company to repay the bridge loan with the proceeds from the
rights offering or any other financing transaction.
In connection with the proposed rights offering, Nephros will
file a registration statement on Form S-1, as may be amended, with the Securities and Exchange Commission (the "SEC").
The securities offered in the rights offering may not be sold, nor may offers to buy be accepted, prior to the time the registration
statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor
shall there be any sale of these securities, in any state in which such offer, solicitation or sale would be unlawful prior to
their registration or qualification under the securities laws of any such state.
Forward-Looking Statements
This press release contains certain
"forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as
amended (the "PSLRA"). Such statements include statements regarding the efficacy and intended use of our
technologies under development, the timelines for bringing such products to market and the availability of funding sources
for the continued development of such products and other statements that are not historical facts, including statements which
may be preceded by the words "intends," "may," "will," "plans,"
"expects," "anticipates," "projects," "predicts," "estimates,"
"aims," "believes," "hopes," "potential" or similar words. For such
statements, we claim the protection of the PSLRA. Forward-looking statements are not guarantees of future performance are
based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond
our control. Actual results may differ materially from the expectations contained in the forward-looking statements. Factors
that may cause such differences include, but are not limited to, the risks that:
More detailed information about the Company and the risk factors
that may affect the realization of forward-looking statements, including the forward-looking statements in this press release,
is set forth in our filings with the SEC. We urge investors and security holders to read those documents free of charge at the
SEC's web site at www.sec.gov. We do not undertake to publicly update or revise our forward-looking statements as a result
of new information, future events or otherwise, except as required by law.