Benzinga | Apr 20, 2021 01:32PM EDT

NEUROONE BEGINS 2021 BY HITTING FIRST PERFORMANCE MILESTONE AND CLOSES LUCRATIVE PRIVATE PLACEMENT

It's been an eventful year for NeuroOne Medical Technologies Corp (OTCQB:NMTC), a medical technology company focused on improving surgical care options and outcomes for patients suffering from neurological disorders. The Minnesota- based company has announced the successful completion of its first performance milestone for its Zimmer Biomet Agreement and closed a $12.5 million private placement.

NeuroOne, a cutting-edge electrode company, intends to use its product for medical conditions such as epilepsy, Parkinson's disease, back pain due to failed back surgery, and in the future for incontinence and hypertension. The devices are placed either through smaller incisions or percutaneously. The technology uses photolithography to ensure a consistent product using cost-efficient manufacturing methods.

The company has successfully met the first performance milestone in a distribution and development agreement that was signed with Zimmer Biomet last summer. In addition to acquiring the exclusive global distribution rights to NeuroOne's Evo(tm) (Evo) patented electrode technology, the partnership also offers the potential for NeuroOne to earn back-end milestone payments if certain events are met within a specified time frame.

President and CEO of NeuroOne Dave Rosa said, "The company is quite pleased to meet this development milestone. Coupled with the announcement of our recent financing, we are confident that our partnership with Zimmer Biomet and the progress in our sEEG program position the company well to offer a unique full complement of brain recording diagnostic technology in 2021 and beyond."

The Zimmer agreement is intended to allow NeuroOne to implement the proceeds in a proposed Nasdaq uplisting, acceleration of research and development efforts, a potential second commercial product launch in 2021 pending regulatory clearance, and other general corporate purposes. NeuroOne received FDA clearance for its Evo cortical technology in November 2019. The Evo Electrode is over 7 times thinner than a silicon electrode. The flexibility and reduced volume would reduce pain and edema.

The Evo's polyimide substrate has properties such as increased flexibility, reduced volume, and decreased immunological response, which should reduce signal artifacts. The single, thin tail design allows the implanted electrode tail to be tunneled through one incision, which should reduce infection risk and procedure time.

NeuroOne anticipates that the replacement of current silicone electrodes with polyimide substrate electrodes for the acquisition of intracranial electroencephalography (iEEG) could provide enhanced clinical electrophysiological value with reduced cost.

In partnership with the Mayo Clinic, Wisconsin Alumni Research Foundation (WARF), and other prominent academic medical centers, the company began developing its cortical electrode technology in 2015. NeuroOne initially focused its efforts on epilepsy and intraoperative tumor monitoring markets. The company intends to continue to develop the technology in therapeutic applications for Parkinson's disease, epilepsy, and pain management due to failed back surgery procedures.