Message #34 From:
Stock News Bot Date: October 18, 2006 06:44:00 AM
CYKN News Cyberkinetics Enters into Definitive Agreements for $10.0 Million Private Placement
FOXBOROUGH, Mass.--(BUSINESS WIRE)--Cyberkinetics Neurotechnology Systems, Inc. (OTCBB:CYKN; “Cyberkinetics”;
"the Company") announced today that it has entered into definitive
agreements to privately sell $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 expects to close
the transaction subject to customary closing conditions.
The Company will issue 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 include Medica
Venture Partners, a leading 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 acted as lead placement agent for the
transaction.
The shares of common stock and warrants to be issued in the private
placement will not have 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 that will be
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.
