Aspire did a similar agreement with MediciNova in August 2012. Share price remained the same after PR announced:
MediciNova Enters Into a $20 Million Common Stock Purchase Agreement With Aspire Capital FundAspire Capital Fund Makes Initial Investment of $1 Million
SAN DIEGO, Aug. 20, 2012 (GLOBE NEWSWIRE) -- MediciNova, Inc., a biopharmaceutical company that is publicly traded on the Nasdaq Global Market (Nasdaq:MNOV) and the Jasdaq Market of the Osaka Securities Exchange (Code Number: 4875), today announced that it has entered into a common stock purchase agreement with Aspire Capital Fund, LLC, an Illinois limited liability company. Aspire Capital has committed to purchase up to $20 million of MediciNova's common stock over the next two years at prices based on the market price at the time of each sale. On execution of the agreement, Aspire Capital made an initial purchase of 606,060 shares of common stock for $1 million, which was equal to the closing price of $1.65 on August 2, 2012, the date upon which the business terms were agreed to between MediciNova and Aspire Capital. "We have followed MediciNova and its MN-221 and MN-166 programs very closely over the past year," commented Steven G. Martin, Managing Member of Aspire Capital. "We believe MediciNova has a promising pipeline, valuable strategic alliances and an experienced management team and we are very excited about this investment opportunity." "With strong progress in our product pipeline this year, our agreement with Aspire Capital will help provide us with timely access to cash to further advance our very promising development programs. This investment will help provide us with the flexibility to obtain capital that is complementary with other financial sources available to us. Aspire Capital has an established history of becoming a meaningful and long-term investor and supporting successful growth companies and we very much look forward to working with them," commented Yuichi Iwaki M.D., Ph.D, President and Chief Executive Officer of MediciNova. Key aspects of the stock purchase agreement include the following: MediciNova will use the net proceeds from any sales of its stock to advance MediciNova's development activities for its lead programs, MN-221 (bedoradrine sulfate) in development for the treatment of acute asthma and chronic obstructive pulmonary disease (COPD) and MN-166 (ibudilast) in development for the treatment of progressive MS, drug addiction and chronic pain. MediciNova is finalizing plans for an October 22, 2012 End-of-Phase 2 meeting with the FDA on MN-221 and expects to be able to outline specific development plans later this year. MediciNova also expects to finalize plans for advancing Phase 2 development of MN-166 later this year. The common stock issued or to be issued under the purchase agreement was or will be issued pursuant to MediciNova's shelf registration statement on Form S-3 (File No. 333-163116). MediciNova will file a prospectus supplement with the U.S. Securities and Exchange Commission (SEC) in connection with the transaction. A more complete and detailed description of the transaction will be set forth in a current report on Form 8-K that that MediciNova will file with the SEC in connection with the transaction. This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
