InVivo Therapeutics Announces Exchange of Certain Warrants for Common Stock
August 10 2017 - 9:00AM
Business Wire
- Eliminates Vast Majority of Adverse Warrants
-
InVivo Therapeutics Holdings Corp. (NVIV) today announced
that it had exchanged certain outstanding warrants that were issued
as part of a financing in 2014 (the “2014 Warrants”) for shares of
the company’s common stock.
The 2014 Warrants have anti-dilution features such that the
exercise price of the warrants decreases if the company sells
shares of its common stock for consideration below the exercise
price of the 2014 Warrants, and upon certain other events. In
addition, the number of warrants increases inversely to the
exercise price decrease. These features can lead to extreme levels
of dilution to existing shareholders and can be a significant
barrier for potential new investors.
The company negotiated individual exchange agreements with
certain of the holders of the 2014 warrants, whereby warrants
representing the vast majority of the existing 2014 Warrants were
exchanged for 2,021,419 new shares of common stock. As a result of
the issuance of the shares of common stock, the exercise price and
number of shares subject to the remaining 2014 Warrants were
adjusted.
Mark Perrin, InVivo’s Chief Executive Officer and Chairman,
said, “We believe that these exchange agreements benefit our
shareholders and the company by creating a substantially cleaner
balance sheet for the company and removing a significant financial
overhang. This puts us in a much stronger financial position as we
work toward reopening enrollment in The INSPIRE Study and
delivering on our mission for spinal cord injury patients.”
About InVivo Therapeutics
InVivo Therapeutics Holdings Corp. is a research and
clinical-stage biomaterials and biotechnology company with a focus
on treatment of spinal cord injuries. The company was founded in
2005 with proprietary technology co-invented by Robert Langer,
Sc.D., Professor at Massachusetts Institute of Technology, and
Joseph P. Vacanti, M.D., who then was at Boston Children’s Hospital
and who now is affiliated with Massachusetts General Hospital. In
2011, the company earned the David S. Apple Award from the American
Spinal Injury Association for its outstanding contribution to
spinal cord injury medicine. In 2015, the company’s investigational
Neuro-Spinal Scaffold™ received the 2015 Becker’s Healthcare Spine
Device Award. The publicly-traded company is headquartered in
Cambridge, MA. For more details, visit
www.invivotherapeutics.com.
Safe Harbor Statement
Any statements contained in this press release that do not
describe historical facts may constitute forward-looking statements
within the meaning of the federal securities laws. These statements
can be identified by words such as "believe," "anticipate,"
"intend," "estimate," "will," "may," "should," "expect," “designed
to,” “potentially,” and similar expressions, and include statements
regarding the impact of the exchange agreements on the Company’s
balance sheet and financial position. Any forward-looking
statements contained herein are based on current expectations, and
are subject to a number of risks and uncertainties. Factors that
could cause actual future results to differ materially from current
expectations include, but are not limited to, risks and
uncertainties relating to the availability of substantial
additional funding for the company to continue its operations and
to conduct research and development, clinical studies and future
product commercialization; and other risks associated with the
company’s business, research, product development, regulatory
approval, marketing and distribution plans and strategies
identified and described in more detail in the company’s Quarterly
Report of the three months ended June 30, 2017, and its other
filings with the SEC, including the company’s Form 10-Qs and
current reports on Form 8-K. The company does not undertake to
update these forward-looking statements.
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InVivo Therapeutics Holdings Corp.Heather Hamel,
617-863-5530Investor
RelationsInvestor-relations@invivotherapeutics.com
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