InVivo Therapeutics Closes $3 Million Registered Direct Offering

InVivo Therapeutics Holdings Corp. (NVIV) announced the closing of its previously announced registered direct offering priced at-the-market under Nasdaq rules of 1,715,240 shares of its common stock at a purchase price of $1.75 per share. The company also issued to the purchasers of such shares unregistered warrants to purchase up to 1,715,240 shares of common stock. The warrants have an exercise price of $1.62 per share, are exercisable immediately, and will expire five and one-half years from the date of issuance.
 
H.C. Wainwright & Co. acted as the exclusive placement agent for the offering.
 
The gross proceeds to the company from the registered direct offering were approximately $3 million, before deducting the placement agent’s fees and other offering expenses payable by the company. InVivo Therapeutics intends to use the net proceeds from this offering for working capital, business development activities, and general corporate purposes.
 
The shares of common stock (but not the warrants issued in the private placement or the shares of common stock issuable upon exercise of the warrants) were offered by InVivo Therapeutics pursuant to a “shelf” registration statement on Form S-3 (File No. 333-234353) previously filed with the U.S. Securities and Exchange Commission (SEC), and declared effective by the SEC on Nov. 14, 2019. A final prospectus supplement and accompanying prospectus relating to the shares of common stock has been filed with the SEC. 
 
The warrants described above were offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended, or the Act, and Regulation D promulgated thereunder, and the warrants and the shares of common stock issuable upon exercise of the warrants have not been registered under the Act or applicable state securities laws. Accordingly, the warrants and shares of common stock issuable upon exercise of the warrants may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Act and such applicable state securities laws.
 
Last month, InVivo Therapeutics announced the closing of its previously announced public offering of 2,545,455 shares of common stock (or pre-funded warrants to purchase common stock in lieu thereof), together with warrants to purchase up to 2,545,455 shares of common stock at a combined effective price to the public of $2.75 per share (or pre-funded warrant) and associated warrant. The gross proceeds from this offering were approximately $7 million, before deducting the placement agent fees and estimated offering expenses payable by InVivo Therapeutics.