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CytoSorbents Corp. (CTSO) Signs $8.5 Million Purchase with Lincoln Park Capita

|Includes: Cytosorbents Corp (CTSO)

CytoSorbents Corp. recently announced the signing of an agreement with Lincoln Park Capital that would see CytoSorbents selling up to $8.5 million of its common stock to Lincoln over the course of 32 months.

CytoSorbents is a critical care-focused therapeutic device company using blood purification to treat life threatening illnesses. The blood purification process is achieved through technology based on porous polymer beads that are able to remove toxic substances from blood and other bodily fluids. CytoSorbents’ flagship product, CytoSorb, has achieved European regulatory approval as of March, 2011. CytoSorb and HemoDefend, development-stage blood purifying technology, are two of the resin-based technologies CytoSorbents is working on for medical utilization.

According to the stipulations of the agreement, CytoSorbents will control the timing and amount of any sales to LPC; likewise LPC will not be able to require the sale of any shares, but will be required to make any purchases that CytoSorbents dictates (subject to certain conditions). The prices that LPC pays will be based on prevailing market prices, but there is no upper limit that LPC may pay on the shares.

Dr. Phillip Chan, Chief Executive Officer of CytoSorbents, said, “We are pleased to enter into a second, expanded funding agreement with Lincoln Park Capital and are encouraged that the commitment under this agreement is greater than the original investment commitment under our previous agreement with them from May 2010. Our experience with the first Lincoln Park financing facility was excellent, allowing us to raise approximately $3.7 million at favorable prevailing market prices over an extended period of time. As with the prior agreement, we determine when and if to sell stock to Lincoln Park Capital at a fixed price, allowing us to determine the best timing and pricing.” Dr. Chan continued, “This funding facility is part of a multi-prong strategy to seek financing that includes equity on the most favorable terms and potential non-dilutive funding that will enable us to continue to move forward aggressively with our commercialization plans for CytoSorb.”

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