Sunshine Heart Completes A$4.6 Million Private Placement in U.S. and Canada
July 25 2011 - 9:00AM
Business Wire
Sunshine Heart, Inc. (ASX:SHC), today announced it has entered
into definitive agreements with new and existing institutional
investors in the United States and Canada to sell approximately 115
million shares of common stock in a private placement.
These investors have agreed to purchase the shares at a price of
A$0.04 per share resulting in gross proceeds of approximately A$4.6
million. For each share purchased, investors will receive one
warrant to purchase 0.3 shares of common stock at an exercise price
of A$0.056 per share (4-year term). The placement was made at a
fifteen percent discount to the volume weighted average price
(VWAP) of the Company’s shares over the 10 consecutive trading days
to 22 July 2011. The funds will be used to support the Company’s
continuing activities to obtain approvals to market its C-Pulse
Heart Assist System. Summer Street Research Partners was the
exclusive placement agent for the transaction.
“The continued confidence demonstrated by the investment
community exemplifies the growing excitement around the C-Pulse
Heart Assist System for treatment of Class III and ambulatory Class
IV heart failure,” said Dave Rosa, Sunshine Heart’s Chief Executive
Officer. “We were especially pleased by the fact that the first
tranche was oversubscribed.”
The Company intends to raise a second tranche of approximately
A$9.1 million under the same terms in August subject to approval at
an Extraordinary General Meeting to be held on August 18, 2011.
This capital is expected to be placed with institutional investors
in Australia, U.S. and Canada. All the capital raised will enable
Sunshine Heart to advance its clinical programs in the U.S., Europe
and other select countries as well as support further development
of the C-Pulse Heart Assist System, including a fully implantable
wireless version.
This press release does not and shall not constitute an offer to
sell or the solicitation of any offer to buy any of the
securities.
About the C-Pulse Heart Assist System
C-Pulse Heart Assist System utilizes the proven scientific
principles of intra-aortic balloon counter-pulsation applied in an
extra-aortic approach to assist the left ventricle by reducing the
workload required to pump blood throughout the body, while
increasing blood flow to the coronary arteries. Operating outside
the patient’s bloodstream, the novel extra-aortic approach of the
C-Pulse technology offers greater flexibility allowing patients to
disconnect as necessary or desired. The C-Pulse Heart Assist’s
potential benefits may help reverse the heart failure process or
maintain the patient's current condition, thereby preventing the
need for later stage heart failure devices, such as left
ventricular assist devices (LVADs), artificial hearts or
transplants.
About Sunshine Heart
Sunshine Heart (ASX:SHC) is a global medical device company
committed to novel cardiac and coronary therapy. The company is
currently developing the C-Pulse® Heart Assist System, an
implantable, non-blood contacting, heart assist therapy for the
treatment of moderate to severe heart failure which can be
implanted using a minimally invasive procedure. C-Pulse is designed
to relieve the symptoms of heart failure through the use of
counter-pulsation technology by enabling an increase in cardiac
output, an increase in coronary blood flow, and a reduction in the
heart's pumping load. The company has received approval from the
U.S. Food and Drug Administration to conduct a U.S. feasibility
clinical trial with the C-Pulse System. Sunshine Heart is a
Delaware-based corporation headquartered in Minneapolis, MN, with a
subsidiary presence in Australia. The company has been listed on
the Australian Securities Exchange (ASX) since September 2004. For
more information, please visit www.sunshineheart.com.
Forward-Looking Statements
This announcement contains forward-looking statements that are
based on management's beliefs, assumptions and expectations and on
information currently available to management. All statements that
address operating performance, events or developments that we
expect or anticipate will occur in the future are forward-looking
statements, including without limitation our expectations with
respect to the progress of, and presentation of data related to
product development and commercialization efforts, results of
clinical trials, expected timing of FDA regulatory filings, FDA
acceptance of our filings and research and development activities,
ultimate clinical outcomes and benefit of the Company’s products to
patients, market and physician acceptance of the products,
intellectual property protection and competitive product offerings
could cause actual events to adversely differ from the expectations
indicated in these forward looking statements. Management believes
that these forward-looking statements are reasonable as and when
made. However, you should not place undue reliance on
forward-looking statements because they speak only as of the date
when made. Sunshine Heart does not assume any obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
Sunshine Heart may not actually achieve the plans, projections or
expectations disclosed in forward-looking statements, and actual
results, developments or events could differ materially from those
disclosed in the forward-looking statements. Forward-looking
statements are subject to a number of risks and uncertainties,
including without limitation, the possibility the FDA does not
accept our regulatory application or approve the marketing of the
C-Pulse® Heart Assist System in the U.S., and those described in
our filings with the ASX. We may update our risk factors from time
to time in our filings with the ASX.
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