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Kips Bay Medical, Inc. (NASDAQ: KIPS) announced today that it has entered into a common stock purchase agreement with Aspire Capital Fund, LLC, an Illinois limited liability company, whereby Aspire Capital has committed over the next 3 years to purchase up to $20 million of Kips Bay common stock based on prevailing market prices over a period preceding each sale. Cohen & Company Capital Markets, LLC, a wholly owned subsidiary of PrinceRidge Holdings LP, acted as financial advisor to Kips Bay in connection with the transaction.
“This agreement provides us the flexibility to raise equity capital at our discretion on fair and reasonable terms,” noted Manny Villafaña, Chairman and Chief Executive Officer. “This agreement will help the Company in meeting its future financing requirements and assist the Company in maintaining its focus on making progress on the regulatory and reimbursement issues that novel medical devices face in today’s environment. While we wait for the opportunity to move forward with the US regulatory process, we continue to focus our efforts on developing our international business and continue to expand our sales and marketing activities. We are continuing to spend a significant amount of time in Europe meeting with doctors and hospital administrators to expand the base of institutions implanting our eSVS MESH and to lay the foundation for the use of the eSVS MESH at still more institutions.”
“Kips Bay has historically raised capital when funding is needed and at terms beneficial to our shareholders. Given the strength of our current balance sheet, we intend to continue this strategy and sell shares under this agreement at favorable times and at opportunistic prices,” said Scott Kellen, Kips Bay’s Chief Financial Officer. “We are very pleased to be working with a financial partner of the caliber and with the experience of Aspire Capital as we move forward to the next level of the development of Kips Bay.”