InVivo Therapeutics Raises $16.1 Million from Warrant Call and Exercises Paving Way for Up-Listing to a National Securities Exchange
<0> InVivo Therapeutics Holdings Corp.Brian Luque, 617-863-5535Director, Investor Relations </0>
a developer of groundbreaking technologies for the treatment of spinal cord injuries (SCI) and other neurotrauma conditions, announced today that the call notice period for the early exercise of warrants issued to investors on October 26, 2010, November 10, 2010 and December 3, 2010 (the “Investor Warrants”) expired on June 3, 2013. By the expiration of the call period, 100% of the Investor Warrants were exercised. The exercises during the call period, coupled with warrant exercises during April 2013, raised $16.1 million gross and $15.6 million after solicitation expenses. Approximately 11.5 million shares of common stock were issued in connection with these warrant exercises. The combination of the exercise of all the Investor Warrants along with the warrant exchange offer completed on May 17, 2013 for placement agent and other eligible warrants resulted in the complete reversal and elimination of the $24.6 million warrant liability recorded on InVivo’s books as of March 31, 2013. As of June 3, 2013, the Company had cash on hand of $23.6 million and total stockholders’ equity of $23.7 million, which exceeds the minimum stockholder’s equity requirements for national securities exchanges.
Said Frank Reynolds, InVivo Chief Executive Officer, “We are pleased with the addition of $15.6 million of cash from the warrant call which strengthens our balance sheet. With the resultant elimination of the $24.6 million warrant liability from our books, the last major impediment to up-listing to a national securities exchange has been removed. We expect that an up-listing to a national securities exchange will increase liquidity and unlock inherent value in our stock.”
InVivo Therapeutics Holdings Corp. is utilizing polymers as a platform technology to develop treatments to improve function in individuals paralyzed from traumatic spinal cord injuries. The company was founded in 2005 based on proprietary technology co-invented by Robert S. Langer, ScD. Professor at Massachusetts Institute of Technology, and Joseph P. Vacanti, MD, who is affiliated with Massachusetts General Hospital. In 2011, the company earned the prestigious David F. Apple Award from the American Spinal Injury Association for its outstanding contribution to spinal cord injury medicine. The publicly traded company is headquartered in Cambridge, MA. For more details, visit .
Certain statements contained in this press release that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934, and the Company intends that such statements are subject to the safe harbor created thereby. These statements include, but are not limited to, those relating to the potential up-listing of our common stock to a national securities exchange, and the impact of any such up-listing, such as increasing liquidity an unlocking inherent value in our stock. These forward-looking statements are based on current expectations, but are subject to a number of risks and uncertainties. The 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 Company’s ability to up-list to a national securities exchange, as well as other factors are identified and described in more detail in our Annual Report on Form 10-K for the year ended December 31, 2012 and subsequent filings with the SEC.
Forward-looking statements contained in this press release speak only as of the date of this release. Subsequent events or circumstances occurring after such date may render these statements incomplete or out of date. The Company undertakes no obligation and expressly disclaims any duty to update such statements.