Cardica Inc. (NSDQ:CRDC) inked a two-year, $10 million stock purchasing deal with investment firm Aspire Capital Fund LLC.
The agreement calls for Cardica to control the timing and amount of any sales, using a formula based on the price of CRDC stock over the 12 days preceding the sale.
"Aspire Capital has no right to require any sales by Cardica, but is obligated to make purchases as Cardica directs in accordance with the purchase agreement, which may be terminated by Cardica at any time, without cost or penalty," according to a press release.
"We believe that having access to additional capital opportunistically will give us the financial flexibility and control to allow us to complete development and pursue our plans to launch the Cardica Microcutter ES8, subject to FDA clearance, in the appropriate manner, while continuing development of other devices within our planned microcutter product line," Cardica president and CEO Dr. Bernard Hausen said in prepared remarks.
Cardica inked another deal with Intuitive Surgical Inc. (NSDQ:ISRG) in August, exchanging a 3 percent stake for the right to integrate its micro-cutter technology into Intuitive’s blockbuster da Vinci surgery robot.
Redwood City, Calif.-based Cardica posted profits of $6.2 million, or 25 cents per share, on sales of $10.0 million during the three months ended Sept. 30. That compares with losses of $2.7 million, or 17 cents per diluted share, on sales of $947,000 during the same period last year.