Vericel Corporation Prices $17 Million Public Offering of Common Stock
December 16 2016 - 9:14AM
Vericel Corporation (NASDAQ:VCEL), a leading developer of expanded
autologous cell therapies for the treatment of patients with
serious diseases and conditions, today announced the pricing of its
previously announced underwritten public offering of 6,200,000
shares of its common stock, offered at a price to the public of
$2.75 per share. The gross proceeds to Vericel from this offering
are expected to be approximately $17 million, before deducting the
underwriting discount and other estimated offering expenses payable
by Vericel. Vericel has granted the underwriter a 30-day option to
purchase at the public offering price up to an aggregate of 930,000
additional shares of its common stock to cover over-allotments, if
any. The offering is expected to close on or about December 21,
2016, subject to customary closing conditions. Vericel anticipates
using the proceeds from the offering to support the
commercialization of MACI, expand promotional efforts for Epicel,
expand and optimize manufacturing and for other general corporate
purposes.
Piper Jaffray & Co. is acting as the sole
manager for the offering.
The offering is being made pursuant to a shelf
registration statement on Form S-3 that was filed with the
Securities Exchange Commission (SEC) on June 29, 2015 and declared
effective by the SEC on July 15, 2015. The offering is being
made only by means of a written prospectus and prospectus
supplement that form a part of the registration statement. A
preliminary prospectus supplement has been filed with the SEC and a
final prospectus supplement for the offering will be filed with the
SEC and will be available on the SEC’s website located at
http://www.sec.gov. Copies of the final prospectus supplement and
the accompanying prospectus relating to the offering, when
available, may be obtained by contacting Piper Jaffray & Co.,
Attention: Prospectus Department, 800 Nicollet Mall, J12S03,
Minneapolis, MN 55402, by telephone: (800) 747-3924 or by email:
prospectus@pjc.com.
This press release does not constitute an offer to
sell or the solicitation of an offer to buy any of these
securities, nor will there be any sale of these securities in any
state or other jurisdiction in which such offer, solicitation or
sale is not permitted.
About Vericel CorporationVericel
develops, manufactures, and markets expanded autologous cell
therapies for the treatment of patients with serious diseases and
conditions. The company currently markets two cell therapy
products in the United States. Carticel® (autologous cultured
chondrocytes) is an autologous chondrocyte implant for the
treatment of cartilage defects in the knee in patients who have had
an inadequate response to a prior arthroscopic or other surgical
repair procedure. Epicel® (cultured epidermal autografts) is
a permanent skin replacement for the treatment of patients with
deep dermal or full thickness burns greater than or equal to 30% of
total body surface area. Vericel also plans to
market MACI® (autologous cultured chondrocytes on porcine
collagen membrane), an autologous cellularized scaffold product
indicated for the repair of symptomatic, single or multiple
full-thickness cartilage defects of the knee with or without bone
involvement in adults, which was recently approved by the
FDA. Vericel is also developing ixmyelocel‑T, an autologous
multicellular therapy intended to treat advanced heart failure due
to ischemic dilated cardiomyopathy.
Cautionary Statement on Forward-Looking
Statements
This press release contains "forward-looking
statements," within the meaning of the Private Securities
Litigation Reform Act of 1995, regarding, among other things, the
proposed public offering of Vericel’s common stock. Such
forward-looking statements are based on current expectations and
involve inherent risks and uncertainties, including factors that
could delay, divert or change any of them, and could cause actual
results to differ materially from those projected in its
forward-looking statements. Meaningful factors which could cause
actual results to differ, including, the satisfaction of customary
closing conditions related to the proposed public offering, as well
as other factors discussed in the "Risk Factors" and "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" sections of Vericel's Annual Report on Form 10-K for
the year ended December 31, 2015 and Vericel’s Quarterly Report on
Form 10-Q for the quarter ended September 30, 2016, which are on
file with the SEC and available on the SEC's website at
www.sec.gov. In addition to the risks described above and in
Vericel's Annual Report on Form 10-K, Quarterly Reports on Form
10-Q, Current Reports on Form 8-K and other filings with the SEC,
other unknown or unpredictable factors also could affect Vericel’s
results. There can be no assurance that the actual results or
developments anticipated by Vericel will be realized or, even if
substantially realized, that they will have the expected
consequences to, or effects on Vericel. Therefore, no assurance can
be given that the outcomes stated in such forward-looking
statements and estimates will be achieved.
CONTACT:
Chad Rubin
The Trout Group crubin@troutgroup.com
(646) 378-2947
or
Lee Stern
The Trout Group lstern@troutgroup.com
(646) 378-2922
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