- Cytori Therapeutics (CYTX) enters into a common stock purchase agreement with Lincoln Park Capital Fund (“LPC”), a Chicago-based institutional investor and existing stockholder in the Company.
- According to the terms of the agreements Cytori will have the right at its sole discretion to sell to LPC up to $20M worth of shares over a 30-month period. Cytori will control the timing of any future investment and LPC will be obligated to make purchases in accordance with the agreements.
- Cytori expects to use the proceeds for working capital and general corporate purposes.
- “We anticipate that the forthcoming new year will bring a number of important milestones for Cytori,” said Marc H. Hedrick, M.D., Cytori’s President and CEO. “This $20M financing facility will help provide additional financial flexibility to Cytori in its efforts to move forward with these key milestones for its stockholders.”
- In exchange, CYTX issues shares of common stock to LPC as a commitment fee and will issue additional shares of common stock on a pro-rata basis only when and if shares are sold to LPC.
- A more detailed description of the Agreements is set forth in Cytori’s Current Report on Form 8-K
- CYTX closed +2.2% at $1.39.
- Source: Press Release