TransEnterix Announces Common Stock Purchase Agreement

TransEnterix Inc., a medical device company that is pioneering the use of robotics to improve minimally invasive surgery, has entered into a common stock purchase agreement with Lincoln Park Capital Fund LLC, an institutional investor.
 
According to the terms and conditions of the agreement, TransEnterix will have the right, in its sole discretion, to sell to Lincoln Park up to $25 million in shares of the company’s common stock over a 36-month period. Any common stock sold to Lincoln Park will occur at a purchase price based on the company’s prevailing market prices at the time of each sale to Lincoln Park. TransEnterix will control the timing and amount of any sales to Lincoln Park, and Lincoln Park will be obligated to make purchases in accordance with the stock purchase agreement. Proceeds will be used for general corporate purposes.
 
“The company expects this commitment to provide us with additional balance sheet strength and to help continue funding our Senhance regulatory and commercial efforts,” said Todd M. Pope, president and CEO at TransEnterix.
 
There are no upper limits on the price Lincoln Park may pay to purchase common stock from TransEnterix. No warrants, derivatives, financial or business covenants, or rights on future financings are associated with the commitment, and Lincoln Park has agreed not to cause or engage in any direct or indirect short selling or hedging of the company’s common stock. In consideration for entering into the commitment, TransEnterix issued shares of common stock to Lincoln Park as a commitment fee and additional shares of common stock will be issued to Lincoln Park pro rata as shares of common stock are sold to Lincoln Park pursuant to the commitment. The stock purchase agreement may be terminated by TransEnterix at any time, at its sole discretion, without any additional cost or penalty.
 
TransEnterix is pioneering the use of robotics to improve minimally invasive surgery by addressing the clinical and economic challenges associated with current laparoscopic and robotic options. The company is focused on the commercialization of the Senhance Surgical Robotic System, a multi-port robotic system that brings the advantages of robotic surgery to patients while enabling surgeons with technology such as haptic feedback and eye sensing camera control. The company is also developing the SurgiBot System, a single-port, robotically enhanced laparoscopic surgical platform. The Senhance Surgical Robotic System has been granted a CE Mark but is not currently available for sale in the United States.
 
Lincoln Park is an institutional investor headquartered in Chicago, Illi. Lincoln Park’s professionals manage a portfolio of investments in public and private entities. These investments are in a wide range of companies and industries emphasizing life sciences, specialty financing, energy and technology. Lincoln Park’s investments range from multiyear financial commitments to fund growth to special situation financings to long-term strategic capital offering companies certainty, flexibility and consistency.