This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

MediciNova Enters Into A $20 Million Common Stock Purchase Agreement With Aspire Capital Fund

SAN DIEGO, Aug. 20, 2012 (GLOBE NEWSWIRE) -- MediciNova, Inc., a biopharmaceutical company that is publicly traded on the Nasdaq Global Market (Nasdaq:MNOV) and the Jasdaq Market of the Osaka Securities Exchange (Code Number: 4875), today announced that it has entered into a common stock purchase agreement with Aspire Capital Fund, LLC, an Illinois limited liability company. Aspire Capital has committed to purchase up to $20 million of MediciNova's common stock over the next two years at prices based on the market price at the time of each sale. On execution of the agreement, Aspire Capital made an initial purchase of 606,060 shares of common stock for $1 million, which was equal to the closing price of $1.65 on August 2, 2012, the date upon which the business terms were agreed to between MediciNova and Aspire Capital.

"We have followed MediciNova and its MN-221 and MN-166 programs very closely over the past year," commented Steven G. Martin, Managing Member of Aspire Capital. "We believe MediciNova has a promising pipeline, valuable strategic alliances and an experienced management team and we are very excited about this investment opportunity."

"With strong progress in our product pipeline this year, our agreement with Aspire Capital will help provide us with timely access to cash to further advance our very promising development programs. This investment will help provide us with the flexibility to obtain capital that is complementary with other financial sources available to us. Aspire Capital has an established history of becoming a meaningful and long-term investor and supporting successful growth companies and we very much look forward to working with them," commented Yuichi Iwaki M.D., Ph.D, President and Chief Executive Officer of MediciNova.

Key aspects of the stock purchase agreement include the following:

  • MediciNova will control the timing and amount of any sales of common stock to Aspire Capital and will determine the sales price before directing Aspire Capital to purchase shares.
  • Aspire Capital has no right to require any sales by MediciNova, but is obligated to make purchases as MediciNova directs, in accordance with the terms of the purchase agreement.
  • There are no limitations on use of proceeds, financial covenants, restrictions on future financings, rights of first refusal, participation rights, penalties or liquidated damages in the purchase agreement.
  • The purchase agreement may be terminated by MediciNova at any time, at its discretion, without any additional cost or penalty.
  • MediciNova has issued to Aspire Capital additional common shares as consideration for entering into the purchase agreement.

MediciNova will use the net proceeds from any sales of its stock to advance MediciNova's development activities for its lead programs, MN-221 (bedoradrine sulfate) in development for the treatment of acute asthma and chronic obstructive pulmonary disease (COPD) and MN-166 (ibudilast) in development for the treatment of progressive MS, drug addiction and chronic pain. MediciNova is finalizing plans for an October 22, 2012 End-of-Phase 2 meeting with the FDA on MN-221 and expects to be able to outline specific development plans later this year. MediciNova also expects to finalize plans for advancing Phase 2 development of MN-166 later this year.  

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs