GlobeNewswire·Nov 11, 2026, 9:00 AM ET

NEXGEL Announces Noteholder Participation in Strategic Recapitalization and Approximately $1.2 Million in New Capital Funding

NXGL NXGLW

Approximately 95% of NEXGEL, Inc.'s outstanding convertible note principal has agreed to convert to common stock, subject to completing a strategic merger.
Noteholders representing $14.125 million of the $14.885 million total principal have executed conversion agreements.
Participating noteholders agreed to receive accrued interest through September 30, 2026, in stock rather than cash to preserve liquidity.
Interest accruing from October 1, 2026, is suspended and will not be payable if conversion occurs.
Total financing commitments reached approximately $1.276 million, with $1.2 million funded to date.
Sequence LifeScience™ contributed $732,000, representing 61% of the funds funded to date.
Sequence LifeScience™ is wholly owned by Brian Kieser, NEXGEL's Interim CEO.
The financing involves purchasing NEXGEL common stock at $5.50 per share with 100% warrant coverage at a $10.00 exercise price.
NEXGEL has implemented $2.25 million in annualized cost savings while pursuing an additional $1.75 million in reductions.
The company is considering a related-party strategic merger with Fountainhead LifeScines, including Sequence LifeScience™ and NVISION Biomedical Technologies, Inc.
If the merger is not completed by March 31, 2027, the note conversions will not occur, and shares purchased will be exchanged for convertible notes.
The transaction remains subject to definitive agreements, regulatory approvals, and other closing conditions.
Additional growth capital is anticipated to be raised in connection with the closing of the strategic merger.

Company: NEXGEL, INC.
Keywords: Nasdaq:NXGL, NEXGEL, INC., NEXGEL, Inc., NASDAQ: NXGL, patient-centric medical, technology, New Capital Funding, Strategic Recapitalization, healthcare