Electro-Optical Sciences, a medical device company, has entered into a committed equity financing facility with Kingsbridge Capital, a private investment group, in which Kingsbridge has committed to provide, at the company’s sole discretion, up to $45m in cash during the next three years, through the purchase of newly-issued shares of Electro-Optical Science’s common stock.
Electro-Optical Sciences (EOS) is not obligated to utilize any of the $45m available under the committed equity financing facility (CEFF) and there are no minimum commitments or minimum use penalties.
EOS has access, at its discretion, to the funds through the sale of newly-issued shares of EOS’s common stock. The funds that can be raised under the CEFF over the three-year term will depend on the then-current price for EOS’s stock, for the number of shares actually sold may not exceed 19.99% of the company’s shares outstanding.
In connection with the CEFF, the company issued a warrant to Kingsbridge to purchase 200,000 shares of common stock at $11.35 per share, representing a 50% premium to the average closing price of the company’s common stock for the five days preceding the signing of the CEFF agreement.
Joseph Gulfo, president and CEO of EOS, said: This financing facility provides us great flexibility in choosing if, and when, to access funds, thereby minimizing shareholder dilution.
We view this as an important secondary source of capital to that of more traditional equity financings. The funds are available to us as we proceed through the regulatory pathway and commercialization process for MelaFind, our non-invasive, point of care, computerized system for early melanoma detection.