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.