Market Overview

Vision-Sciences Announces Purchase Agreement for up to $15 Million With Lincoln Park Capital Fund

Vision-Sciences (NASDAQ: VSCI) announced Friday that it has entered into a purchase agreement with Lincoln Park Capital Fund, LLC, a Chicago-based institutional investor, for the sale of up to a total of $15 million of its common stock.

The purchase agreement commits LPC to purchase up to $15 million of Vision-Sciences' common stock, from time to time, over a 36-month period, subject to specified limitations, including an initial investment of $1 million. We will issue to LPC additional common shares as consideration for entering into this agreement. The transaction may be increased by up to an additional $6 million, subject to the Company's market capitalization increasing as described in the agreement, for a total aggregate of $21 million. The securities under this agreement are offered through a prospectus supplement pursuant to the Company's effective shelf registration statement and included base prospectus.

Under the agreement, there are no upper limits to the price LPC may pay to purchase Vision-Sciences' common stock. LPC has no right to require any sales by Vision-Sciences, but is obligated under the agreement to purchase the Company's common stock, as Vision-Sciences directs in its sole discretion as provided in the agreement. Vision-Sciences may terminate the agreement at any time, without cost or penalty. The pricing of any sale of Vision-Sciences' common stock to LPC will be fixed pursuant to a formula based upon market prices of the Company's common stock preceding the notice to LPC without any fixed discount. Vision-Sciences will therefore know on the date it elects to sell stock to LPC the price per share that LPC will be required to pay.

Posted-In: News Offerings Insider Trades After-Hours Center

 

Related Articles (VSCI)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters