(Source: Business Wire)
Cytori Therapeutics (NASDAQ:CYTX) entered into an equity agreement with Seaside 88, LP (Seaside'). Under the terms of the agreement, Seaside has committed to purchase up to 7.15 million Cytori common shares, in a series of closings every two weeks in the amount of 275,000 shares each for a total of up to 26 purchases. Cytori and Seaside expect to close the first sale of 275,000 shares for gross proceeds of $852,000 today. Cytori has the right to discontinue the agreement between the 13th and 14th closings, based on the Company's assessment of its financing needs at that time.
"This infusion of capital in Cytori is intended to support potential near and longer-term revenue growth," said Mark E. Saad, chief financial officer for Cytori. "Proceeds will be used to, among other things, accelerate marketing efforts and continue our investment in clinical trials to broaden the number of potential applications for which the Celution® System may be applied. Because this financing could address Cytori's cash operating requirements through 2010, it allows management to focus even greater efforts on growing the business and enables the Company to price future closings with Seaside following the achievement of important milestones and value drivers."
"Based on extensive due diligence, we identified significant growth opportunities for several applications of Cytori's Celution® and StemSource® products," said Denis O'Donnell, M.D., a principal of Seaside's general partner. "Cytori's strong management, alignment with leading corporate partners, and device-based commercialization strategy has positioned it to become one of the first successful companies within the field of regenerative medicine."
The purchase price for all closings executed under the agreement is determined by applying a 13% discount to a volume-weighted-average price (VWAP) of Cytori's common stock. The price of the shares to be sold at today's initial closing will be based on Cytori's share price on June 19. The pricing of all subsequent closings will be based on Cytori's share price for the ten trading days preceding each closing date. The scheduled closings will not take place if the Company's VWAP for the ten preceding trading days is less than $2.50.
Cytori is offering the securities in this agreement pursuant to an effective shelf registration statement. The offering is being made only by means of a prospectus. Copies of the final prospectus supplement and accompanying base prospectus relating to the offering can be obtained from Cytori's Investor Relations Department at 3020 Callan Rd., San Diego, CA 92121, or from the U.S.
