Surgical systems maker Cardica Inc. said Thursday that it has made a deal to sell Chicago-based institutional investor Aspire Capital Fund LLC up to $10 million of its shares over the next two years.
Cardica President and CEO Dr. Bernard A. Hausen said the access to money from Aspire will give Cardica "the financial flexibility and control" to let it finish developing and launching its Microcutter ES8 stapler for surgeons. That's an endoscopic stapling device designed to be used in a variety of procedures, including bariatric, thoracic and general surgery.
Cardica said it will control the amount and timing of any shares issued to Aspire. The price will be determined by a formula based on trading prices over the 12 days preceding the sale. Cardica said it can terminate the agreement at any time without penalty.
Cardica shares rose 6 cents to $3.90 in morning trading. At current prices, $10 million worth of shares would total about 2.56 million shares. The company currently has 25.3 million shares outstanding.