InVivo Therapeutics (NSDQ:NVIV) said today it inked a stock purchase agreement with Lincoln Park Capital Fund to sell up to $15 million in shares over a two-year period.
The new agreement comes with conditions and limitations, including giving the rights to InVivo to control the timing and amount of sales of stock and that the purchase price is based on prevailing market prices.
The Cambridge, Mass.-based company said that as part of the agreement, Lincoln Park cannot require the company to make sales but is obligated to make purchases as directed by the company, and that there are no upper limits on the price Lincoln Park could be obligated to pay. The deal also has no financial covenants, rights of first refusal, participation rights or liquidated damages.
“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. 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,” acting CEO Dr. Richard Toselli said in a press release.
As part of the agreement, InVivo said it issued shares of its stock to Lincoln Park as a commitment fee.
Earlier this month, InVivo released updated results from the Inspire study of its neuro-spinal scaffold but said that it would not be reopening enrollment, which it paused last July, and is instead looking to a new randomized controlled trial to supplement the results.
