Alimera Sciences, Inc. (Nasdaq: ALIM) (“Alimera”), a leader in the
commercialization and development of prescription ophthalmology
treatments for the management of retinal diseases, announces that
it has entered into a $20.0 million common stock purchase
agreement with Lincoln Park Capital Fund, LLC (“LPC”),
a Chicago-based institutional investor.
Upon entering into the agreement, LPC purchased $1.0
million of Alimera’s registered common stock
at $0.50 per share, which represents a 35% premium to the
closing market price of the stock on October 24, 2019.
Thereafter and upon satisfaction of the conditions in the
agreement, Alimera, from time to time over a 36-month period, will
have the right, in its sole discretion, to sell up to an additional
$19.0 million of its common stock to LPC. Alimera will control
the timing and amount of any future sale of shares of common stock
to LPC, and LPC is obligated to make purchases according to
Alimera’s direction, as governed by the agreement. There are no
upper limits to the price per share LPC may pay to purchase common
stock from Alimera, and the purchase price of the shares will be
based on the prevailing market prices of Alimera’s common shares at
the time of each sale to LPC.
“The LPC commitment affords Alimera a flexible option to invest
in our current business to pursue strategies to leverage our global
sales infrastructure and build a leading company focused on the
treatment of retinal diseases,” said Rick Eiswirth, president
and CEO of Alimera. “The terms of the Agreement provide a
low-cost option with no restrictive covenants or warrants. In
addition, we have gained an institutional investor that has made a
commitment in support of our company, as evidenced by their initial
investment at a premium to the market, as we make progress in the
business and build shareholder value.”
Alimera will use the net proceeds from the sales for general
corporate purposes, including funding intended to facilitate the
continued commercialization and growth of ILUVIEN® in the United
States and in international territories, launches of ILUVIEN in new
international territories, launches of ILUVIEN’s second indication
for non-infectious posterior uveitis in international markets, and
for potential strategic initiatives.
LPC has agreed not to engage in any direct or indirect short
selling or hedging of Alimera’s shares of common stock. There are
no limitations on the use of proceeds, and there are no rights of
first refusal, participation rights, penalties or liquidated
damages in the purchase agreement. As consideration for Lincoln
Park’s commitment to purchase shares of common stock pursuant to
the purchase agreement, Alimera issued 1,363,636 shares of common
stock to Lincoln Park. Alimera may terminate the purchase agreement
at any time, at its discretion, without any additional cost or
penalty. The common stock purchase agreement and a related
registration rights agreement are summarized in Alimera’s Current
Report on Form 8-K filed today with the Securities and
Exchange Commission (SEC).
This press release does not constitute an offer to sell or the
solicitation of an offer to buy any securities nor will there be
any sale of these securities in any state or other jurisdiction in
which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state or other jurisdiction.
About Alimera Sciences, Inc.
Alimera, founded in June 2003, is a pharmaceutical company that
specializes in the commercialization and development of
prescription ophthalmic pharmaceuticals for the management of
retinal diseases. Alimera is presently focused on diseases
affecting the back of the eye, or retina, because these diseases
are not well treated with current therapies and will affect
millions of people in our aging populations. For more information,
please visit www.alimerasciences.com.
About ILUVIEN
ILUVIEN (fluocinolone acetonide intravitreal implant) 0.19 mg is
a sustained release intravitreal implant, injected into the back of
the eye. With its CONTINUOUS MICRODOSING™ technology, ILUVIEN
is designed to release submicrogram levels of fluocinolone
acetonide, a corticosteroid, for up to 36 months, to reduce the
recurrence of disease, enabling patients to maintain vision longer
with fewer injections. ILUVIEN is approved in the U.S., Canada,
Kuwait, Lebanon and the U.A.E to treat diabetic macular edema (DME)
in patients who have been previously treated with a course of
corticosteroids and did not have a clinically significant rise in
intraocular pressure. In 17 European countries, ILUVIEN is
indicated for the treatment of vision impairment associated with
chronic DME considered insufficiently responsive to available
therapies. In March 2019, ILUVIEN received approval in the 17
countries under the Mutual Recognition Procedure for prevention of
relapse in recurrent non-infectious uveitis affecting the posterior
segment of the eye. The 17 European countries include the U.K.,
Germany, France, Italy, Spain, Portugal, Ireland, Austria, Belgium,
Denmark, Norway, Finland, Sweden, Poland, Czech Republic, the
Netherlands, and Luxembourg. The regulatory process is now in the
national phase in which the European member states have finalized
or are expected to finalize the label for the new indication to
meet each country’s local requirements. Timeline to this goal
varies by each country. ILUVIEN is not approved for treatment of
uveitis in the United States.
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, Alimera’s expectations regarding its
use of the common stock purchase agreement to obtain capital. Such
forward-looking statements are based on current expectations and
involve inherent risks and uncertainties, including factors that
could delay, divert or change these expectations, and could cause
actual results to differ materially from those projected in these
forward-looking statements. Meaningful factors that could cause
actual results to differ include, but are not limited to, the
ability of Alimera to meet the terms and conditions of the
agreement, the possible negative effects on the market liquidity of
Alimera’s common stock of the reverse stock split that Alimera
expects to implement if its stockholders approve it at the upcoming
special stockholders meeting on November 4, 2019, Alimera’s ability
to satisfy the conditions in the purchase agreement to direct
Lincoln Park to make purchases of common stock, the effect such
capital may have on the success of ILUVIEN in current markets or on
any expansion into new markets, the receptiveness of current and
future markets to ILUVIEN and other factors discussed in the “Risk
Factors” and “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” sections of Alimera’s Annual
Report on Form 10-K for the year ended December 31, 2018, and its
Quarterly Reports on Form 10-Q for the quarters ended March 31,
2019, and June 30, 2019, which are on file with the Securities and
Exchange Commission and available on its website at
http://www.sec.gov.
For press inquiries: Jules Abraham for Alimera
Sciences 917-885-7378 julesa@coreir.com |
For investor inquiries: Scott Gordon for Alimera
Sciences scottg@coreir.com |
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