InVivo Therapeutics Closes Oversubscribed Private Placement, Raising $13 Million
CAMBRIDGE, Mass. – December 6, 2010 – InVivo Therapeutics (OTCBB: NVIV), a company
focused on the development of groundbreaking technologies for the treatment of spinal cord
injuries (SCI), today announced that it has successfully closed a private placement offering of
13 million units of its securities for total gross proceeds of $13 million. The company had
announced on October 27, 2010 that it completed a placement of 10.5 million units of such
securities. The additional 2.5 million units sold subsequently enabled the company to reach the
maximum overallotment for the offering. Spencer Trask Ventures, Inc. served as Placement
Agent for the financing and financial advisor to the Company.
Each unit sold in the private placement consists of one share of common stock of InVivo and
one warrant, with each warrant entitling the holder to purchase one share of common stock for a
five-year period at an exercise price of $1.40 per share. Warrants issued to investors in the
private placement, if exercised or called, would yield additional total gross proceeds of $18.2
million.
"We are very pleased with how our financing was received by investors and see it as vote of
confidence in the promise of our groundbreaking technologies," said Frank Reynolds, CEO of
InVivo Therapeutics. "InVivo now has a strong balance sheet with which to execute our
strategic plan, which includes moving into human clinical testing with our lead product candidate
in the first half of next year.”
Adam K. Stern, Senior Managing Director of Spencer Trask Ventures and a newly appointed
member of the InVivo Board of Directors, said: "InVivo represents a beacon of hope within the
SCI community. The company’s groundbreaking technologies, which incorporate multiple
strategies involving biomaterials, FDA approved drugs, growth factors, and human neural stem
cells, offer the first potential treatment for SCI that addresses the underlying pathology of these
injuries, rather than just the symptoms. The successful close of this financing is a critical
component of realizing this potential.”
Warrants issued in the private placement are callable by InVivo if the common stock trades for a
price equal to or greater than $2.80 per share for twenty consecutive trading days following the
effectiveness of a registration statement. Including the shares sold in the private placement,
InVivo has total shares outstanding of approximately 51.6 million. Net proceeds received from
the sale of units are expected to be used for research and development, repayment of certain
debt, fixed asset additions and working capital and general corporate purposes.
