Message #35 From:
NewsBot Date: October 18, 2006 01:10:00 PM
CYKN News Cyberkinetics Closes $10.0 Million Private Placement
FOXBOROUGH, Mass.--(BUSINESS WIRE)--Cyberkinetics Neurotechnology Systems, Inc. (OTCBB:CYKN; “Cyberkinetics”;
"the Company") announced today that it closed a private placement of
$10.0 million of newly issued shares of common stock and warrants to
purchase additional shares of common stock to institutional and
accredited investors.
The Company issued an aggregate of approximately 8.33 million shares of
common stock at a price of $1.20 per share, together with warrants to
purchase up to approximately 4.167 million additional shares of common
stock at an exercise price of $1.40 per share. Investors included Medica
Venture Partners, a large Israeli healthcare-dedicated venture fund, and
Oxford Bioscience Partners of Boston, Massachusetts. The Company intends
to use the net proceeds to support its planned 2007 launch of the
Cyberkinetics’ Andara™
OFS™ (Oscillating Field Stimulator) Device,
for other research and clinical programs and for general corporate
purposes. C.E. Unterberg, Towbin served as lead placement agent for the
offering. WBB Securities, LLC served as co-agent for the transaction.
The shares of common stock and warrants sold in the private placement
have not been registered under the Securities Act of 1933, as amended,
or any state securities laws and may not be offered or sold in the
United States except pursuant to an effective registration statement
filed with the Securities and Exchange Commission (SEC) or pursuant to
an applicable exemption from the relevant registration requirements. The
Company has agreed to file a registration statement with the SEC for the
resale of the shares of common stock issued in the private placement and
the shares of common stock issuable upon exercise of the warrants.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any of these securities nor shall there
be any sale of these securities in any state or 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
jurisdiction.
About Cyberkinetics Neurotechnology Systems, Inc.
Cyberkinetics Neurotechnology Systems, Inc., a leader in the
neurotechnology industry, is developing neural stimulation, sensing and
processing technology to improve the lives of those with severe
paralysis resulting from spinal cord injuries, neurological disorders
and other conditions of the nervous system. Cyberkinetics’
product development pipeline includes: the Andara™
Oscillating Field Stimulator (OFS™) Device, an
investigative device designed to stimulate regeneration of the neural
tissue surrounding the spinal cord and to restore sensation and motor
function; the BrainGate System, an investigative device designed to
provide communication and control of a computer, assistive devices, and,
ultimately, limb movement; and the NeuroPort™
System, which is cleared to market in the United States, a neural
monitor designed for acute inpatient applications and labeled for
temporary (less than 30 days) recording and monitoring of brain
electrical activity. Additional Information is available at Cyberkinetics’
website at http://www.cyberkineticsinc.com.
Forward-Looking Statements
This announcement contains forward-looking statements, including
statements about Cyberkinetics' product development plans and progress.
These statements are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995, and can be identified
by the use of forward-looking terminology such as "may," "will,"
"believe," "expect," "anticipate" or other comparable terminology.
Forward-looking statements involve risks and uncertainties that could
cause actual results to differ materially from those projected in
forward-looking statements and reported results shall not be considered
an indication of our future performance. Factors that might cause or
contribute to such differences include our limited operating history;
our lack of profits from operations; our ability to successfully develop
and commercialize our proposed products; a lengthy approval process and
the uncertainty of FDA and other governmental regulatory requirements;
clinical trials may fail to demonstrate the safety and effectiveness of
our products; the degree and nature of our competition; our ability to
employ and retain qualified employees; compliance with recent
legislation regarding corporate governance, including the Sarbanes-Oxley
Act of 2002; as well as those risks more fully discussed in our public
filings with the Securities and Exchange Commission, all of which are
difficult to predict and some of which are beyond our control.
