CytoSorbents in stock sale pact with Lincoln Park Capital

CytoSorbents (OTCBB:CTSO) has signed a purchase agreement for the sale, from time to time, of up to $8.5 million of its common stock to Lincoln Park Capital Fund, a Chicago-based institutional investor.

Proceeds from any sale of common stock will be used to help fund the commercialization of CytoSorb in Europe, conduct additional clinical trials, expand CytoSorbents’ research and development pipeline, and for general working capital purposes.

“We are pleased to enter into a second, expanded funding agreement with Lincoln Park Capital and are encouraged that the commitment under this agreement is greater than the original investment commitment under our previous agreement with them from May, 2010,” CytoSorbents CEO Dr. Phillip Chan said in a statement.

The company raised about $3.7 million at favorable prevailing market prices from Lincoln Park Capital previously. “As with the prior agreement, we determine when and if to sell stock to Lincoln Park Capital at a fixed price, allowing us to determine the best timing and pricing,” Dr. Chan added.

“This funding facility is part of a multi-prong strategy to seek financing that includes equity on the most favorable terms and potential non-dilutive funding that will enable us to continue to move forward aggressively with our commercialization plans for CytoSorb,” he said.