Alimera Sciences Announces Equity Purchase Agreement for up to $20 Million with Lincoln Park Capital
Upon entering into the agreement, LPC purchased $1.0 million of Alimera’s registered common stock at $0.50 per share, which represents a 35% premium to the closing market price of the stock on October 24, 2019.
Thereafter and upon satisfaction of the conditions in the agreement, Alimera, from time to time over a 36-month period, will have the right, in its sole discretion, to sell up to an additional
“The LPC commitment affords Alimera a flexible option to invest in our current business to pursue strategies to leverage our global sales infrastructure and build a leading company focused on the treatment of retinal diseases,” said Rick Eiswirth, president and CEO of Alimera. “The terms of the Agreement provide a low-cost option with no restrictive covenants or warrants. In addition, we have gained an institutional investor that has made a commitment in support of our company, as evidenced by their initial investment at a premium to the market, as we make progress in the business and build shareholder value.”
Alimera will use the net proceeds from the sales for general corporate purposes, including funding intended to facilitate the continued commercialization and growth of ILUVIEN® in
LPC has agreed not to engage in any direct or indirect short selling or hedging of Alimera’s shares of common stock. There are no limitations on the use of proceeds, and there are no rights of first refusal, participation rights, penalties or liquidated damages in the purchase agreement. As consideration for Lincoln Park’s commitment to purchase shares of common stock pursuant to the purchase agreement, Alimera issued 1,363,636 shares of common stock to Lincoln Park. Alimera may terminate the purchase agreement at any time, at its discretion, without any additional cost or penalty. The common stock purchase agreement and a related registration rights agreement are summarized in Alimera’s Current Report on Form 8-K filed today with the Securities and Exchange Commission (
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities nor will there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.
Alimera, founded in
ILUVIEN (fluocinolone acetonide intravitreal implant) 0.19 mg is a sustained release intravitreal implant, injected into the back of the eye. With its CONTINUOUS MICRODOSING™ technology, ILUVIEN is designed to release submicrogram levels of fluocinolone acetonide, a corticosteroid, for up to 36 months, to reduce the recurrence of disease, enabling patients to maintain vision longer with fewer injections. ILUVIEN is approved in the U.S.,
Forward Looking Statements
This press release contains “forward-looking statements,” within the meaning of the Private Securities Litigation Reform Act of 1995 regarding, among other things, Alimera’s expectations regarding its use of the common stock purchase agreement to obtain capital. Such forward-looking statements are based on current expectations and involve inherent risks and uncertainties, including factors that could delay, divert or change these expectations, and could cause actual results to differ materially from those projected in these forward-looking statements. Meaningful factors that could cause actual results to differ include, but are not limited to, the ability of Alimera to meet the terms and conditions of the agreement, the possible negative effects on the market liquidity of Alimera’s common stock of the reverse stock split that Alimera expects to implement if its stockholders approve it at the upcoming special stockholders meeting on
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Source: Alimera Sciences, Inc.