Item 1.01 Entry into a Material Definitive Agreement.
On December 16, 2016, Vericel Corporation (the Company, Vericel or we) entered into a purchase agreement (Purchase Agreement) with Piper Jaffray & Co., as representative of the underwriters named therein (the Underwriters), relating to the issuance and sale of 6,200,000 of the Companys common stock, at a price to the public of $2.75 per share. Pursuant to the Purchase Agreement, the Underwriters have agreed to purchase the shares from us at a price of $2.56 per share. The net proceeds to us from this offering are expected to be approximately $15.6 million, after deducting underwriting discounts and commissions and other estimated offering expenses payable by us. The sale of shares of common stock is expected to close on or about December 21, 2016, subject to customary closing conditions. In addition, under the terms of the Purchase Agreement, we have granted the Underwriters an option, exercisable for 30 days from the date of the Purchase Agreement, to purchase up to an additional 930,000 shares of our common stock to cover over-allotments, if any.
The Purchase Agreement contains customary representations, warranties and agreements by us, customary conditions to closing, indemnification obligations of Vericel and the Underwriters, including for liabilities under the Securities Act of 1933, as amended, other obligations of the parties and termination provisions. The representations, warranties and covenants contained in the Purchase Agreement were made only for purposes of such agreement and as of specific dates, were solely for the benefit of the parties to such agreement, and may be subject to limitations agreed upon by the contracting parties.
The offering is being made pursuant to the Companys effective shelf registration statement on Form S-3 (Registration Statement No. 333-205336), including the prospectus dated July 15, 2015, contained therein, and the related prospectus supplement.
A copy of the Purchase Agreement is filed as Exhibit 1.1 to this report, and the foregoing description of the Purchase Agreement does not purport to be complete and is qualified in its entirety by reference to such exhibit. A copy of the opinion of Dykema Gossett PLLC relating to the legality of the issuance and sale of the securities in these offerings is attached as Exhibit 5.1 hereto.
Item 9.01 Exhibits.
(d) Exhibits.
Exhibit No.
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Description
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1.1
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Purchase Agreement, dated December 16, 2016
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5.1
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Opinion of Dykema Gossett PLLC
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23.1
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Consent of Dykema Gossett PLLC (included in Exhibit 5.1)
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99.1
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Press Release dated December 16, 2016
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