MALVERN, Penn.--(BUSINESS WIRE)--Orthovita, Inc. (NASDAQ: VITA), a spine and orthopedic biosurgery company, announced today a $32.5 million equity offering. The transaction consists of a registered direct offering of approximately 12.3 million shares of Orthovita common stock to select institutional investors and an accredited investor associated with one of the institutions. The share price is based on a 15% discount to the 30 day volume weighted average price (VWAP) of the Company’s common stock immediately prior to the date of the definitive offering documents. The Company expects to receive approximately $32.2 million in net proceeds from the equity offering after deduction of estimated offering expenses. There is no placement agent in this transaction. Essex Woodlands Health Ventures (EWHV) is the lead investor in this offering and will obtain the right to appoint a member to the Orthovita Board of Directors. Lehman Brothers Inc., Magnetar Capital, and affiliates of William Harris Investors, Inc., existing shareholders of the Company, are the other institutional investors in the equity offering. The Company intends to use the net proceeds from the equity offering for product development, sales force expansion, increasing manufacturing capacity, as well as for working capital and other general corporate purposes.
