Offering with Lincoln Park expected to settle in $1 million tranches
By Devika Patel and Stephanie N. Rotondo
Knoxville, Tenn., May 31 - Bacterin International Holdings, Inc. arranged a $31 million share purchase agreement with Lincoln Park Capital Fund, LLC on May 27, according to an 8-K filed Tuesday with the Securities and Exchange Commission. The investor bought $1 million of shares at pricing.
The company will sell the common shares to Lincoln Park over three years. The investor initially purchased 326,798 shares and warrants for 130,719 shares, which are each exercisable at $3.06, the closing price on May 26.
Lincoln Park will buy the shares in $1 million tranches. It will receive 128,506 shares as a commitment fee and up to 164,675 shares pro rata when and if it purchases the remaining $30 million of shares.
"We were impressed with their technology," Jonathan Cope, managing member of Lincoln Park, said in an interview with Prospect News. "Orthopedics is a huge market. This was an investment we were excited to make."
Cope said that the firm knew other Bacterin investors and decided to get involved.
"I think the terms are mutually beneficial," he said. "It's a growing market. ... We're happy to invest at market valuation given the size of the market they are going after."
The developer of anti-infective coatings for medical applications is based in Belgrade, Mont.
| Issuer: | Bacterin International Holdings, Inc.
|
| Issue: | Share purchase agreement
|
| Amount: | $31 million
|
| Tenor: | Three years
|
| Warrants: | Yes
|
| Warrant strike price: | $3.06
|
| Investor: | Lincoln Park Capital Fund, LLC
|
| Fees: | Up to 293,181 shares
|
| Pricing date: | May 27
|
| Settlement date: | May 27 (for $1,000,002)
|
| Stock symbol: | NYSE Amex: BONE
|
| Stock price: | $3.24 at close May 27
|
| Market capitalization: | $128.7 million
|
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