CAMBRIDGE, Mass.--(BUSINESS WIRE)--InVivo Therapeutics Holdings Corp. (Nasdaq: NVIV) today announced that it has entered into a common stock purchase agreement with Lincoln Park Capital Fund, LLC (“Lincoln Park”), a Chicago-based institutional investor, 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.
A more detailed description of the purchase agreement and registration rights agreement is set forth in the company’s Current Report on Form 8-K as filed with the SEC which the company encourages be reviewed carefully.
About InVivo Therapeutics
InVivo Therapeutics Holdings Corp. is a research and clinical-stage biomaterials and biotechnology company with a focus on treatment of spinal cord injuries. The company was founded in 2005 with proprietary technology co-invented by Robert Langer, Sc.D., Professor at Massachusetts Institute of Technology, and Joseph P. Vacanti, M.D., who then was at Boston Children’s Hospital and who now is affiliated with Massachusetts General Hospital. In 2011, the company earned the David S. Apple Award from the American Spinal Injury Association for its outstanding contribution to spinal cord injury medicine. In 2015, the company’s investigational Neuro-Spinal Scaffold™ implant received the 2015 Becker’s Healthcare Spine Device Award. The publicly traded company is headquartered in Cambridge, MA. For more details, visit www.invivotherapeutics.com.
Safe Harbor Statement
Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements within the meaning of the federal securities laws. These statements can be identified by words such as "believe," "anticipate," "intend," "estimate," "will," "may," "should," "expect," “designed to,” “potentially,” and similar expressions, and include statements regarding the status of the company’s clinical program. Any forward-looking statements contained herein are based on current expectations, and are subject to a number of risks and uncertainties. Factors that could cause actual future results to differ materially from current expectations include, but are not limited to, risks and uncertainties relating to the company’s discussions and engagement with the FDA; the company’s ability to initiate, conduct and complete clinical trials; the expected benefits and potential efficacy of the company’s products and technology in connection with the treatment of spinal cord injuries; the availability of substantial additional funding for the company to continue its operations and to conduct research and development, clinical trials and future product commercialization; and other risks associated with the company’s business, research, product development, attainment of regulatory approval, marketing and distribution plans and strategies identified and described in more detail in the company’s Quarterly Report on Form 10-K for the three months ended September 30, 2017, and its other filings with the SEC, including the company’s most recent Form 10-K, its Form 10-Qs and its current reports on Form 8-K. The company does not undertake to update these forward-looking statements.