REDWOOD CITY, Calif., Oct. 1 /PRNewswire-FirstCall/ -- Cardica, Inc. today announced that it has completed its previously announced private placement of common stock and warrants to purchase common stock. Gross proceeds from the offering were approximately $10.2 million. The primary use of the capital will be to fund development of Cardica’s endoscopic microcutter and other general corporate and working capital purposes.
The company issued an aggregate of 8,142,082 newly-issued shares of common stock and warrants to purchase up to 4,071,046 additional shares of common stock. Cardica expects to receive net proceeds of approximately $10.1 million after deducting offering expenses.
The financing was led by existing investor, Sutter Hill Ventures, who was joined by other existing investors, Wasatch Advisors and Perkins Capital Management, in addition to new investors Prescott Group Capital Management and DAFNA Capital Management.
In connection with the financing, Cardica has agreed, subject to certain terms and conditions, to file a registration statement under the Securities Act covering the registration of the common stock and the shares underlying the warrants acquired at closing within 30 days after closing.
This press release does not and shall not constitute an offer to sell or the solicitation of any offer to buy any of the securities.
For additional information, please refer to Cardica’s current report on Form 8-K filed with the Securities and Exchange Commission with respect to this transaction.
About Cardica
Cardica is a leading provider of automated anastomosis systems for coronary artery bypass graft (CABG) surgery. By replacing hand-sewn sutures with easy-to-use automated systems, Cardica’s products provide 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 the United States and Europe and its PAS-Port(R) Proximal Anastomosis System is marketed in the United States, Europe and Japan. In addition, the company is developing the Cardica Microcutter, a true multi-fire endoscopic stapling device designed to be used in a variety of settings including bariatric, thoracic and general surgery.
Forward-Looking Statements
This press release contains “forward-looking statements,” including, without limitation, statements related to the anticipated closing, and proposed use of proceeds, of the private placement. The word “expects” and 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 related to Cardica’s development plans, as well as other risks detailed from time to time in Cardica’s SEC reports, including its Annual Report on Form 10-K for the fiscal year ended June 30, 2009. Cardica expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the company’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based. You are encouraged to read Cardica’s reports filed with the U.S. Securities and Exchange Commission, available at www.sec.gov.
SOURCE Cardica, Inc.
CONTACT: Bob Newell, Vice President, Finance and Chief Financial Officer
of Cardica, Inc., +1-650-331-7133, investors@cardica.com
