REDWOOD CITY, Calif., June 7 /PRNewswire-FirstCall/ -- Cardica, Inc. today announced that it has entered into a securities purchase agreement in connection with a private placement to a group of accredited investors that includes Sutter Hill Ventures, Wasatch Advisors, Inc. and Allen & Company Incorporated. Pursuant to the terms of the securities purchase agreement, Cardica will receive approximately $11.9 million in gross proceeds from the sale of 2,301,337 shares of its common stock and the issuance of warrants for the purchase of 575,347 additional shares of Cardica’s common stock with an exercise price of $5.65 per share. The per unit purchase price of a share of Cardica’s common stock and a warrant to purchase 0.25 of a share of Cardica’s common stock is $5.16. Subject to the satisfaction of customary closing conditions, the transaction is expected to close on or about June 11, 2007.
A.G. Edwards acted as the lead placement agent for this placement, with Allen & Company LLC acting as the co-placement agent.
Neither the shares of Cardica’s common stock nor the warrants issued in connection with the private placement have been registered under the Securities Act of 1933, as amended (the “Securities Act”). Accordingly, these securities may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act. Cardica has agreed to file within 30 days after the closing one or more registration statements covering the resale of the common stock as well as the common stock issuable upon exercise of the warrants. This press release shall not constitute an offer to sell or the solicitation of an offer to buy Cardica’s common stock or warrants.
About Cardica, Inc.
Cardica designs and manufactures automated anastomosis systems for coronary artery bypass graft (CABG) surgery. By replacing hand-sewn sutures with easy-to-use automated systems, Cardica provides cardiovascular surgeons with rapid, reliable and consistently reproducible anastomoses, or connections of blood vessels, often considered the most critical aspect of the CABG procedure. Cardica’s C-Port(R) Distal Anastomosis Systems are marketed in Europe and the United States. The PAS-Port(R) Proximal Anastomosis System is marketed in Europe and Japan and is being evaluated in a pivotal trial in the United States and Europe. Cardica also is developing additional devices to facilitate vascular and other surgical procedures.
Forward Looking Statements
This press release contains “forward-looking” statements regarding Cardica, including statements with respect to the anticipated closing of the private placement. Any statements contained in this press release that are not historical facts may be deemed to be forward-looking statements. The words “will,” “expected,” “intends” or similar expressions are intended to identify forward-looking statements. There are a number of important factors that could cause Cardica’s results to differ materially from those indicated by these forward-looking statements, including risks associated with the satisfaction of the conditions to the closing of the private placement, as well as other risks detailed from time to time in Cardica’s SEC reports, including its Quarterly Report on Form 10-Q for the quarter ended March 31, 2007. Cardica does not undertake any obligation to update forward-looking statements. You are encouraged to read Cardica’s reports filed with the U.S. Securities and Exchange Commission, available at http://www.sec.gov.
Cardica, Inc.
CONTACT: Bob Newell, Vice President, Finance and Operations, ChiefFinancial Officer of Cardica, Inc., +1-650-331-7133, investors@cardica.com;or Daryl Messinger of WeissComm Partners, Inc., +1-415-999-2361,daryl@weisscommpartners.com, for Cardica, Inc.
