The company entered the agreement with an institutional investor. It covers the purchase of just shy of 4 million shares of common stock and warrants to purchase common stock. Alameda, California-based Vivani priced the shares at $3.80 apiece. Warrants have the same exercise price, immediate exercisability upon issuance and an expiration date of three years post-issuance date.
Maxim Group served as the sole placement agent, with ThinkEquity acting as financial advisor in the offering. The company anticipates gross proceeds of $15 million before fees and other expenses. It expects to close the offering on or about March 5, according to a news release.
Vivani did not list an intended use of proceeds, but funds could go toward the continued development of its drug delivery implant technology.
The company develops NanoPortal implant technology to steadily deliver medication over extended periods of time. Vivani aims to guarantee correct doses for patients while avoiding potential safety concerns around fluctuating drug release profiles. The technology can also deliver large hydrophilic molecules, including peptides and proteins. The company believes this enables a broader range of therapeutic applications.
Earlier this week, the company shared news on its strategic shift to prioritize obesity-treating implants. Vivani said it based this change on emerging data regarding the potential for high-dose GLP-1 products. With this news, the company announced positive pre-clinical data on weight loss effects for its long-term exenatide implant.
