Full Press Release Details
Nephros Announces Completion of Rights Offering
RIVER EDGE, NJ, March 24, 2014 /PR Newswire-FirstCall/ -- Nephros,
Inc. (OTCQB:NEPH), a commercial stage medical device company that develops and sells high performance liquid purification ultrafilters
and an on-line mid-dilution hemodiafiltration system for the treatment of chronic renal failure patients, announced today the successful
completion of its rights offering.
Nephros received gross proceeds of $2.14 million from the rights
offering. A portion of the proceeds was used for the repayment of the $1.5 million note issued to Lambda Investors LLC, Nephros'
largest shareholder, in November 2013 in connection with its loan to Nephros, plus $61,000 of accrued interest thereon. Nephros
issued a total of 7,140,822 shares of common stock to the holders of subscription rights who validly exercised their subscription
rights, which represents 77% of the total shares offered in the rights offering.
"Nephros is pleased to have closed the shareholders rights
offering," said John C. Houghton, President, Chief Executive Officer and Acting Chief Financial Officer. He added that "The
net proceeds from these transactions will provide Nephros with funds to pursue the further commercialization of our high performance
liquid purification filters and our on-line mid-dilution hemodiafiltration system".
Pursuant to the rights offering, Lambda Investors LLC has the
right, but not the obligation, to purchase up to 2,025,845 shares of common stock of the company, representing the unsubscribed
shares in the rights offering, before the close of business on March 31, 2014.
Nephros is a commercial stage medical device company that develops
and sells high performance liquid purification filters. Our filters, which we call ultrafilters, are primarily used in dialysis
centers for the removal of biological contaminants from water, bicarbonate concentrate and/or blood.
We were founded in 1997 by healthcare professionals affiliated
with Columbia University Medical Center/New York-Presbyterian Hospital to develop and commercialize an alternative method to hemodialysis
(HD). We have extended our filtration technologies to meet the demand for liquid purification in other areas, in particular water
Presently, we offer ultrafilters for sale to customers in four
For more information about Nephros, please visit the company's
website at www.nephros.com.
Forward-Looking Statements
Certain statements in this press release constitute "forward-looking
statements". 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 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. 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, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2012
and our other periodic reports filed with the SEC. We urge you 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.