InVivo Therapeutics extends expiration date of warrants sold in 2010

Company seeks to facilitate listing of its stock on national exchange

By Devika Patel

Knoxville, Tenn., April 8 - InVivo Therapeutics Holdings Corp. said it has launched an offer to exchange the warrants it issued in 2010 for new warrants. The warrants, which are exercisable for roughly 15 million common shares, have strike prices of $1.40 and $1.00 and expire in 2015.

InVivo is offering new warrants that extend the warrant expiration date for an additional two years in exchange for elimination of a provision in the 2010 warrants that provides anti-dilution protection if shares are sold at prices below the warrant exercise prices.

The exchange offer will expire on May 6.

The purpose of the offer is to remove the weighted average anti-dilution provisions from the warrants so InVivo's financial statements more closely reflect its operating results and financial condition. The exchange will also facilitate a listing of the company's common stock on a national securities exchange.

"We believe that the warrant exchange offer is mutually beneficial for the 2010 warrant holders, InVivo and our shareholders," chief executive officer Frank Reynolds said in a press release. "For the warrant holders, the two year extension represents a significant increase in the value of the warrant while the anti-dilution clause being relinquished is unlikely to come into play as InVivo has raised $23 million at over $2.00 per share, and the company's current $185 million market capitalization is significantly higher since becoming a public company in 2010. For InVivo and our shareholders, the warrant exchange would remove a key impediment to the up-listing of our stock to the NYSE Mkt or Nasdaq, which we believe would increase liquidity and unlock additional value inherent in our company."

Based in Cambridge, Mass., the medical device company is developing treatments for spinal cord injuries.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.