Nexalin Technology (NXL) shares were down 15% Friday after the medical device company filed a preliminary prospectus for the potential sale of nearly 2.8 million shares available to Maxim Partners by exercising warrants issued to the private equity firm during the company's initial public offering in September 2022.

Maxim can exercise warrants to buy nearly 2.7 million shares at $4.15 apiece anytime within three years of their 2022 issue. Nexalin's stock topped the exercise price for the first time ever on Nov. 15 and traded as high as $4.18 per share as recently as Dec. 13 but closed Thursday at $3.06 and were extending their retreat on Friday.

Nexalin would receive around $11 million in gross proceeds if Maxim exercised all of its available warrants, and is not due to receive any proceeds from the sale of any shares by Maxim, according to the company's prospectus.

Price: 2.60, Change: -0.46, Percent Change: -15.00