Cardica Prices Offering Of 32.50 Mln Common Stock At $0.85/shr - Quick Facts

(RTTNews) - Cardica Inc. (CRDC) announced Wednesday that it has priced an underwritten public offering of 32.50 million shares of its common stock, offered at a price to the public of $0.85 per share, and 191,474 shares of its Series A convertible preferred stock, offered at a price to the public of $85.00 per share.

The Series A convertible preferred stock is non-voting and is convertible into shares of Cardica common stock at a conversion rate of 100 shares of common stock for each share of Series A convertible preferred stock, provided that conversion will be prohibited if, as a result, the holder and its affiliates would own more than 9.98% of the total number of shares of Cardica common stock then outstanding unless the holder gives Cardica at least 61 days prior notice of an intent to convert into shares of common stock that would cause the holder to own more than 9.98% of the total number of shares of common stock then issued and outstanding.

Cardica said it has also granted to the underwriters an option to purchase up to an additional 4.875 million shares of common stock to cover overallotments.

The gross proceeds to Cardica from this offering are expected to be $43.9 million, before deducting underwriting discounts and commissions and other estimated offering expenses payable by Cardica.

The offering is expected to close on or about April 22, 2014, subject to customary closing conditions.

Cardica anticipates using the net proceeds from the offering for general corporate purposes, including the costs of sales and marketing activities for the U.S. launch of Cardica's MicroCutter XCHANGE 30, research and development activities, and general and administrative and manufacturing expenses.