A Medical Device Daily
Cytori Therapeutics (San Diego) said it will raise about $17 million from a private placement financing led by Olympus (Tokyo) with participation from select institutional investors. Net proceeds are expected to be about $16.4 million after offering-related fees and expenses.
Cytori entered into agreements to issue a total of 2.83 million shares of common stock with 50% warrant coverage at $6 per unit. The warrants will be exercisable for up to a total of 1.42 million shares of common stock at an exercise price of $8.50 per share. The warrants will have a five year term and will be exercisable no sooner than six months following the closing of this transaction.
Olympus, as the lead investor, will purchase one million shares and warrants exercisable for up to an additional 500,000 shares. Olympus entered into a separate purchase agreement with Cytori and was expected to fund its purchase of the securities on or about Aug. 8. The closing with respect to the other investors is expected to take place on or about Aug 11, subject to the satisfaction of customary closing conditions.
Cytori said it intends to use the proceeds to expand commercialization activities for its Celution 800/CRS System in Europe and Asia Pacific and global marketing efforts for the company's Celution system-based StemSource Cell Bank business. In addition, the proceeds will be used for funding the company's product development, clinical trials, working capital, and general corporate purposes.
Piper Jaffray & Co. served as the exclusive placement agent for all securities offered as part of the financing other than those offered to Olympus.