The purchase price per share was $1.15, which equaled the consolidated closing bid price of the company’s common stock as reported by the Nasdaq stock market on February 19, 2009. The warrants will be exercisable at any time and from time to time beginning on the date that is six months and one day after the closing and ending four years after the closing of the private placement.
The warrants will have an exercise price of $1.38 per share, which equals 120% of the consolidated closing bid price of the company’s common stock as reported by the Nasdaq stock market on February 19, 2009.
The closing of the private placement is expected to take place on or before February 24, 2009. Canaccord Adams acted as sole placement agent for this offering.
According to the company, proceeds from the transaction will be used to fund clinical studies of VBLOC therapy in obesity, hypertension and diabetes, submission for regulatory approval of the Maestro system in the treatment of obesity upon receipt of satisfactory results from the Empower pivotal trial, as well as for general working capital purposes.