REDWOOD CITY, Calif., Sept. 28 /PRNewswire-FirstCall/ -- Cardica, Inc. today announced that it has obtained commitments from institutional and individual investors to purchase approximately $10.2 million of its common stock and warrants to purchase common stock in a private placement. Cardica has entered into a securities purchase agreement with the investors pursuant to which Cardica will sell an aggregate of 8,142,082 shares of its common stock, and warrants to purchase up to 4,071,046 additional shares of common stock. Each unit, consisting of one share of common stock and a warrant to purchase 0.5 of a share of common stock, will be sold for a purchase price of $1.2525. The private placement is subject to customary closing conditions and is expected to close during the week of September 28, 2009.
Proceeds from the private placement are expected to be used to develop the Cardica Microcutter as well as for other general corporate and working capital purposes.
The warrants will be exercisable at an exercise price equal to $1.45, which represents a 22% premium over the consolidated closing bid price of the common stock as reported on the Nasdaq Global Market on September 25, 2009. The warrants are exercisable commencing on the six-month anniversary of the closing and will expire five years from the date of issuance.
In connection with the private placement, 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 warrants acquired at closing within 30 days after the 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 to be filed with the Securities and Exchange Commission with respect to the private placement.
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® Distal Anastomosis Systems are marketed in the United States and Europe and its PAS-Port® 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 “expected” 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 the satisfaction of the conditions to, and the timing of, the closing of the private placement and 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.
