InVivo Therapeutics today said that its previously announced $10.5 million private placement actually brought in $13 milion with additional units being purchased by Spencer Trask Ventures Inc., which served as placement agent and financial advisor.
InVivo, a Cambridge company working on a polymer-based treatment of spinal cord injuries, announced the private placement on Oct. 27, at the same time that it reported on a reverse merger conducted by InVivo Therapeutics Holdings Corp. (OTCBB: NVIV), a wholly owned subsidiary of that holding company.
Each unit in the private placement consists of one share of common stock and one warrant, with each warrant entitling the holder to purchase one share of stock for a five-year period at an exercise price of $1.40 per share. If all of the warrants are exercised or called, they would yield additional total gross proceeds of $18.2 million, according to InVivo.
The company said it plans to use the funds to repay debt, apply to research and development, and use in working capital and fixed asset additions.
InVivo Therapeutics was founded in 2005 to develop technology co-invented by MIT professor Robert Langer and Joseph P. Vacanti, who is affiliated with Massachusetts General Hospital.
In November, InVivo Therapeutics signed a lease to open its first manufacturing and development facility in Medford. The company will use the facility to ramp up production of its lead therapeutic candidate – a polymer scaffolding device to treat open wound spinal cord injuries.
