Yesterday, spinal cord injury treatment company InVivo Therapeutics announced that it has successfully closed a private placement offering for 13 million units of its securities. In total, the gross proceeds equal around $13 million. Each unit sold consists of one share of common stock of InVivo and one warrant, with each warrant entitling the holder to purchase one share of common stock for a five-year period at an exercise price of $1.40 per share. The issued warrants, if exercised, could yield additional total gross proceeds of $18.2 million.
Back in October, InVivo announced that it had completed a placement of 10.5 million units of such securities. The additional 2.5 million units sold since then enabled the company to reach the maximum overallotment for the offering. Spencer Trask Ventures, Inc. served as a financial advisor and Placement Agent for the company.
“We are very pleased with how our financing was received by investors and see it as vote of confidence in the promise of our groundbreaking technologies,” said Frank Reynolds, CEO of InVivo Therapeutics. “InVivo now has a strong balance sheet with which to execute our strategic plan, which includes moving into human clinical testing with our lead product candidate in the first half of next year.”
Adam K. Stern, Senior Managing Director of Spencer Trask Ventures and a newly appointed member of the InVivo Board of Directors, remarked, “InVivo represents a beacon of hope within the SCI community. The company’s groundbreaking technologies, which incorporate multiple strategies involving biomaterials, FDA approved drugs, growth factors, and human neural stem cells, offer the first potential treatment for SCI that addresses the underlying pathology of these injuries, rather than just the symptoms. The successful close of this financing is a critical component of realizing this potential.”