Lightwave Logic Announces $33.0 Million Financing Agreement with Lincoln Park Capital Fund

Rhea-AI Summary

Lightwave Logic (NASDAQ: LWLG) has entered its fifth agreement with Lincoln Park Capital Fund, LLC, securing a financing deal worth $3 million at $9.16 per share. This agreement allows Lightwave Logic to sell up to an additional $30 million of common stock over a 36-month period, offering significant flexibility in capital sourcing. CEO Jim Marcelli stated that with a current cash reserve of approximately $15 million, this financing is crucial for product commercialization and long-term shareholder value.

Positive

• Secured a financing agreement for $3 million at $9.16/share, enhancing immediate liquidity.
• The agreement allows for additional sales of up to $30 million of common stock over 36 months, offering capital flexibility.

Negative

• None.

ENGLEWOOD, Colo., Oct. 7, 2021 /PRNewswire/ -- Lightwave Logic, Inc. (NASDAQ: LWLG), a technology platform company leveraging its proprietary electro-optic (EO) polymers to transmit data at higher speeds with less power, has entered into its 5^th agreement with Lincoln Park Capital Fund, LLC ("LPC"), a Chicago-based institutional investor. LPC is a long time investor in Lightwave Logic, and first invested in Lightwave Logic in 2011. LPC purchased $3 million of common stock at closing, which was sold at $9.16/share.

Under the purchase agreement, Lightwave Logic will have the right, but not the obligation, to sell up to an additional $30.0 million of its common stock to Lincoln Park over a 36-month period.  Lightwave Logic will control the timing and amount of any sales to Lincoln Park with no upper limits to the price Lincoln Park may pay to purchase such common stock. The purchase agreement may be terminated by Lightwave Logic at any time, in its sole discretion, without any additional cost or penalty.

Jim Marcelli, President and Chief Operating Officer of Lightwave Logic, commented, "While we are comfortable with our current cash position of approximately $15 million and burn rate, this financing provides additional flexibility for us as we move forward toward commercialization of our products.

"The Lincoln Park facility allows us to source capital in an opportunistic manner, in addition to our S-3 shelf registration that provides the potential for additional financing alternatives. We believe that maintaining this optionality is critical to financing the company in a way that helps to create value for our shareholders over the long-term," stated Marcelli.

A description of the purchase agreement is set forth in the Company's Current Report on Form 8-K, which the Company filed with the SEC on Tuesday, October 5, 2021.

About Lightwave Logic, Inc.            
Lightwave Logic, Inc. (NASDAQ: LWLG) is developing a platform leveraging its proprietary engineered electro-optic (EO) polymers to transmit data at higher speeds with less power. The Company's high-activity and high-stability organic polymers allow Lightwave Logic to create next-generation photonic EO devices, which convert data from electrical signals into optical signals, for applications in data communications and telecommunications markets. For more information, please visit the Company's website at lightwavelogic.com.

Safe Harbor Statement        
The information posted in this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by use of the words "may," "will," "should," "plans," "explores," "expects," "anticipates," "continue," "estimate," "project," "intend," and similar expressions. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. These risks and uncertainties include, but are not limited to, lack of available funding; general economic and business conditions; competition from third parties; intellectual property rights of third parties; regulatory constraints; changes in technology and methods of marketing; delays in completing various engineering and manufacturing programs; changes in customer order patterns; changes in product mix; success in technological advances and delivering technological innovations; shortages in components; production delays due to performance quality issues with outsourced components; those events and factors described by us in Item 1.A "Risk Factors" in our most recent Form 10-K; other risks to which our Company is subject; other factors beyond the Company's control.

Investor Relations Contact:        
Greg Falesnik or Luke Zimmerman          
MZ Group - MZ North America 
949-385-6449 
LWLG@mzgroup.us 
www.mzgroup.us

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SOURCE Lightwave Logic, Inc.

FAQ

What is the financing amount Lightwave Logic secured in October 2021?

Lightwave Logic secured a financing agreement worth $3 million.

How much additional capital can Lightwave Logic raise from Lincoln Park Capital?

Lightwave Logic can raise up to an additional $30 million over a 36-month period.

At what price per share did Lightwave Logic sell its common stock to Lincoln Park?

Lightwave Logic sold its common stock at $9.16 per share.

What is Lightwave Logic's current cash position as mentioned in the PR?

Lightwave Logic's current cash position is approximately $15 million.

When was the agreement with Lincoln Park Capital announced?

The agreement with Lincoln Park Capital was announced on October 7, 2021.