InVivo Therapeutics has entered into a common stock purchase agreement with Lincoln Park Capital Fund under which the company has the right to sell up to $15 million in shares of common stock to Lincoln Park over a twenty-four-month period, subject to certain limitations and conditions set forth in the purchase agreement and registration rights agreement, including:
- The company, in its sole discretion, controls the timing and amount of any sales of common stock;
- The purchase price is based on prevailing market prices with no warrants;
- Lincoln Park cannot require the company to make sales, but is obligated to make purchases as the company directs in accordance with the terms of the purchase agreement;
- There are no upper limits on the price per share that Lincoln Park could be obligated to pay for shares of common stock under the purchase agreement;
- There are no financial covenants, rights of first refusal, participation rights or liquidated damages; and
- The SEC declares effective a registration statement, registering the shares of common stock that Lincoln Park purchases pursuant to the purchase agreement.
“We are pleased to enter into this purchase agreement with Lincoln Park, which offers us financial flexibility on favorable terms to the company and its shareholders,” said Richard Toselli, M.D., Acting Chief Executive Officer. “We welcome their investment as we pursue our near-term strategic objectives and continue our discussions with the FDA regarding a randomized controlled study in acute complete thoracic spinal cord injury that evaluates the Neuro-Spinal Scaffold™ compared to standard of care.”
In consideration for entering into the purchase agreement, the company has issued shares of common stock to Lincoln Park as a commitment fee. The purchase agreement may be terminated by the company at any time, in its sole discretion.