Lincoln Park Capital Fund has signed a stock purchase agreement with GelTech Solutions for up to USD10 million of common stock.
“With our recent sales increases with several state agencies in the Wildland Division and our continued penetration in the Utilities Division, this is a great time to enter into this funding arrangement with Lincoln Park, an institutional investor that has partnered with GelTech in the past to supplement the Company’s capital needs," says Michael Reger, GelTech’s president. "The funds will provide the Company with capital, if needed, to fund operations, including supporting working capital needs, increasing inventory and investing in the infrastructure necessary to sustain the growth of the Company. Similar to our prior agreements with Lincoln Park, we are under no obligation to utilise the facility.”
Under the terms of the purchase agreement and related registration rights agreement, GelTech has agreed to file a registration statement with the US Securities and Exchange Commission (SEC) covering the sale of the shares that may be issued to Lincoln Park.
There are no upper limits to the price Lincoln Park may pay to purchase common stock from GelTech and the purchase price of the shares related to any future investments will be based on the prevailing market prices of the Company’s shares immediately preceding the notice of sale to Lincoln Park. Lincoln Park has agreed not to cause or engage in any manner whatsoever, any direct or indirect short selling or hedging of the Company’s shares of common stock. In consideration for entering into the agreement, GelTech has issued shares of common stock to Lincoln Park as a commitment fee. The agreement may be terminated by GelTech at any time, at its sole discretion, without any cost or penalty.