Mar. 10, 2011 (PR Newswire) --
RIVER EDGE, N.J., March 10, 2011 /PRNewswire/ -- Nephros, Inc. (OTC Bulletin Board: NEPH), a medical device company developing and marketing filtration products for therapeutic applications, infection control, and water purification, today announced the completion of its rights offering and private placement that together resulted in gross proceeds of approximately $3.2 million to Nephros. The aggregate net proceeds received by Nephros from the rights offering and private placement are estimated to be approximately $2.3 million, after deducting the estimated aggregate expenses of these transactions, the repayment of the $500,000 note, plus all accrued interest thereon, issued to Lambda Investors, LLC, Nephros' largest stockholder, in September 2010 in connection with its loan to Nephros, the payment of an 8% sourcing/transaction fee ($40,000) in respect of the note and an aggregate of $100,000 for reimbursement of Lambda Investors' legal fees incurred in connection with the loan and the rights offering.
"Nephros is pleased to have successfully closed the shareholders rights offering and related private placement financing," said James S. Scibetta, Chairman of Nephros. "The net proceeds from these transactions will provide Nephros with funds to pursue the further development and commercialization of our filtration products."
Nephros' stockholders subscribed for 99,297,082 units in its previously announced rights offering and Nephros accepted all basic subscription rights and oversubscription privileges. The units were sold at a per unit purchase price of $0.02. Gross proceeds to Nephros from the sale of these units in the rights offering was approximately $2.0 million. Nephros issued an aggregate of 99,297,082 shares of its common stock and warrants to purchase an aggregate of approximately 91.8 million shares of its common stock to stockholders who subscribed.