INVIVO THERAPEUTICS HOLDINGS CORP. (NASDAQ:NVIV) Files An 8-K Entry into a Material Definitive Agreement

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INVIVO THERAPEUTICS HOLDINGS CORP. (NASDAQ:NVIV) Files An 8-K Entry into a Material Definitive Agreement
Item 9.01. Entry into a Material Definitive Agreement.

Purchase Agreement and Registration Rights Agreement

On January25, 2018,InVivo Therapeutics Holdings Corp. (the “Company”) entered into a purchase agreement (the “Purchase Agreement”) and a registration rights agreement (the “Registration Rights Agreement”) with Lincoln Park Capital Fund, LLC (“LPC”), to which the Company has the right to sell to LPC up to $15,000,000 in shares of the Company’s common stock, $0.00001 par value per share (the “Common Stock”), subject to certain limitations and conditions set forth in the Purchase Agreement.

Sales of Common Stock by the Company to LPC under the Purchase Agreement, if any, may occur from time to time, in the Company’s sole discretion, over the 24-month period commencing on the date that a registration statement, which the Company agreed to file with the Securities and Exchange Commission (the “SEC”) to the Registration Rights Agreement, is declared effective by the SEC and the other terms and conditions of the Purchase Agreement are satisfied (the “Commencement Date”).

Under the Purchase Agreement, from and after the Commencement Date, the Company has the right, from time to time in its sole discretion and subject to certain conditions and limitations set forth in the Purchase Agreement, to direct LPC to purchase up to 150,000 shares of Common Stock on any business day on which the closing sale price of the Common Stock is not below $0.25 per share (subject to adjustment as provided in the Purchase Agreement) (each, a “Regular Purchase”), provided that one business day has passed since the Company’s most recent Regular Purchase notice was delivered to LPC. The maximum number of shares of Common Stock that the Company may direct LPC to purchase in any single Regular Purchase under the Purchase Agreement increases, up to a maximum of 250,000 shares of Common Stock, if on the purchase date for such Regular Purchase the closing sale price of the Common Stock is not below certain threshold prices set forth in the Purchase Agreement, provided that LPC’s total purchase obligation under any single Regular Purchase shall not exceed $1,000,000.

In addition to Regular Purchases, the Company may also direct LPC to purchase additional amounts of Common Stock as accelerated purchases, additional accelerated purchases or as additional purchases, if the closing sale price of the Common Stock is not below certain threshold prices on the applicable date as set forth in the Purchase Agreement. The Company also has the right, but not the obligation, to direct LPC on the business day immediately following the Commencement Date and in one single purchase, to make an initial purchase of Common Stock for an aggregate purchase price of $1,000,000.

In all instances, the Company may not sell shares of its Common Stock to LPC under the Purchase Agreement if it would result in LPC beneficially owning more than 4.99% of the Common Stock. Furthermore, under applicable rulesof The Nasdaq Global Market, in no event may we issue or sell to LPC under the Purchase Agreement more than 19.99% of the shares of Common Stock outstanding immediately prior to the execution of the Purchase Agreement (which is 6,852,465 shares based on 34,279,467 shares outstanding immediately prior to the execution of the Purchase Agreement) (the “Exchange Cap”, unless (i)we obtain stockholder approval to issue shares of Common Stock in excess of the Exchange Cap or (ii)the average price of all applicable sales of our common stock to LPC under the Purchase Agreement equals or exceeds $0.711 per share (which represents the closing consolidated bid price of our common stock on January24, 2018, plus an incremental amount to account for our issuance of the Commitment Shares (defined below) to LPC), such that the transactions contemplated by the Purchase Agreement are exempt from the Exchange Cap limitation under applicable Nasdaq rules.

The Purchase Agreement and the Registration Rights Agreement contain customary representations, warranties, agreements and conditions to completing future sale transactions, indemnification rights and obligations of the parties. The Company has the right to terminate the

Purchase Agreement at any time, at no cost or penalty. During any “event of default” under the Purchase Agreement, all of which are outside of LPC’s control, LPC does not have the right to terminate the Purchase Agreement; however, the Company may not initiate any regular or other purchase of shares by LPC, until such event of default is cured.

Actual sales of shares of Common Stock to LPC under the Purchase Agreement will depend on a variety of factors to be determined by the Company from time to time, including, among others, market conditions, the trading price of the Common Stock and determinations by the Company as to the appropriate sources of funding for the Company and its operations. As a commitment fee for entering into the Purchase Agreement, the Company has agreed to issue to LPC 429,800 shares of Common Stock (the “Commitment Shares”). The Company will not receive any cash proceeds from the issuance of the Commitment Shares.

The net proceeds under the Purchase Agreement to the Company will depend on the frequency and prices at which the Company sells shares of its stock to LPC. The Company expects that any proceeds received by the Company from such sales to LPC will be used for working capital and general corporate purposes.

This Current Report on Form8-K shall not constitute an offer to sell or a solicitation of an offer to buy any shares of Common Stock, nor shall there be any sale of shares of Common Stock in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

The foregoing description of the terms of the Purchase Agreement and Registration Rights Agreement does not purport to be complete and is subject to, and qualified in its entirety by reference to, the full text of the Purchase Agreement and Registration Rights Agreement, copies of which are filed as Exhibit1.1 and Exhibit1.2 hereto, respectively, and are incorporated herein by reference.

Item 9.01 Unregistered Sales of Equity Securities.

The disclosure set forth above under Item 9.01 is incorporated herein in its entirety by reference.

LPC represented to the Company, among other things, that it was an “accredited investor” (as such term is defined in Rule501(a)of Regulation D under the Securities Act of 1933, as amended (the “Act”)), and the Company is offering and selling the securities under the Purchase Agreement in reliance upon private placement exemptions from the registration requirements under Section4(a)(2)of the Act, as well as Rule506(b)under Regulation D under the Act.

Item 9.01. Financial Statements and Exhibits.

(d)Exhibits


INVIVO THERAPEUTICS HOLDINGS CORP. Exhibit
EX-1.1 2 a18-3801_2ex1d1.htm EX-1.1 Exhibit 1.1   Execution Version   PURCHASE AGREEMENT   PURCHASE AGREEMENT (the “Agreement”),…
To view the full exhibit click here

About INVIVO THERAPEUTICS HOLDINGS CORP. (NASDAQ:NVIV)

InVivo Therapeutics Holdings Corp., formerly Design Source, Inc., is a research and clinical-stage biomaterials and biotechnology company. The Company is engaged in developing and commercializing biopolymer-scaffolding devices for the treatment of spinal cord injuries (SCI). The Company’s approach to treating acute SCIs is based on its investigational Neuro Spinal Scaffold implant, an investigational bioresorbable polymer scaffold that is designed for implantation at the site of injury within a spinal cord contusion and is intended to treat acute spinal cord injury. The Neuro-Spinal Scaffold consists of biocompatible and bioresorbable polymers, which include poly lactic-co-glycolic acid (PLGA) and Poly-L-Lysine (PLL). The Company is also evaluating other technologies and therapeutics that may be complementary to its development of the Neuro-Spinal Scaffold implant. The Company has a clinical development program for acute SCI and a preclinical development program for chronic SCI.