Nuwellis Secures Funding
Nuwellis Secures $6.0 Million Through Closing of Registered Public Stock Offering
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Nuwellis, Inc. closed a $6.0 million registered public offering on June 9, 2026, selling shares at $0.30 each — well below where the stock had been trading just days before. The Minneapolis medical device company raised the money through a mix of common stock, pre-funded warrants, and two new series of warrants that could eventually add nearly 100 million new shares to its float, according to AP News.
The market reacted swiftly and harshly. Shares fell from roughly $0.74 before the announcement to as low as $0.15 within 48 hours — a drop of more than 60%. The offering was managed by Ladenburg Thalmann & Co. Inc. and the SEC declared the registration effective on June 4, 2026, according to MarketScreener.
How the $6 Million Deal Was Structured
The offering sold 1,903,338 shares of common stock at $0.30 per share. Alongside those shares, the company sold pre-funded warrants covering 18,096,662 more shares at $0.2999 each. Pre-funded warrants are a tool companies use to let buyers purchase shares later for almost nothing — in this case, just $0.0001 per share. According to MarketScreener, the full package raised roughly $6 million in gross proceeds before fees.
On top of those shares and pre-funded warrants, buyers also received two rounds of additional warrants. Series C warrants cover up to 60 million shares, and Series D warrants cover up to 20 million shares — both priced at $0.30 to exercise. If every single warrant is eventually exercised, Nuwellis could issue close to 100 million new shares, according to AP News.
Warrants Won't Work Without a Reverse Stock Split
There is a catch built into the deal. The Series C and D warrants cannot be exercised until Nuwellis completes a reverse stock split. A reverse split reduces the number of shares outstanding and raises the price per share — something Nuwellis needs to stay listed on Nasdaq, which requires a minimum $1.00 share price. Without shareholder approval for that split, the warrants are worthless.
The Series C warrants also include a one-time price reset tied to the reverse split. If a split happens, the exercise price adjusts to whichever is higher: 20% of the $0.30 offering price, or 90% of the stock's average price over the five days after the split. Critics have called this a "death spiral" feature — meaning the price keeps resetting lower as the stock falls, according to MarketScreener.
Company Defends the Raise as a Survival Lifeline
Nuwellis makes the Aquadex FlexFlow system, a device that removes excess fluid from heart failure patients. The company posted 26% year-over-year revenue growth in Q1 2026, but also recorded a $4.3 million net loss in the same quarter. CEO John Erb pointed to that revenue growth as proof the business is moving in the right direction, even as the company burns through cash.
The $6 million raised — roughly $4.4 million after underwriting fees — gives the company an estimated one to two quarters of additional runway, based on its Q1 operating expenses of about $6.0 million. Management also said a portion of the proceeds may support the integration of Rendiatech, a kidney-monitoring technology firm Nuwellis acquired in early 2026, according to AP News.
Investors See Massive Dilution, Not a Strategic Win
Before this offering, Nuwellis had a market cap of around $5.4 million. The possibility of 100 million new shares entering the market has alarmed existing shareholders. Financhill Research rates the stock "Strongly Bearish" with a score of just 5 out of 100, noting the stock sits far below its 50-day and 200-day moving averages. Many retail investors described the $0.30 pricing as a betrayal, since the stock was trading at more than double that price just days before.
The deal's structure — heavy warrants, a below-market price, and a reset clause — has drawn comparisons to what critics call "toxic financing." Ladenburg Thalmann, the sole underwriter, describes the raise as essential working capital for a growing medical device company with a 70.1% gross margin. Whether the company can grow fast enough to justify the dilution remains the central question for investors, according to MarketScreener.
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