GelTech Solutions, an environmentally friendly industrial products company based in Jupiter, Florida, said on Wednesday that it has signed a stock-purchase agreement on Monday with investment firm Lincoln Park Capital Fund, LLC, which will purchase up to $10 million in GelTech common stock.
Under the terms of the purchase agreement and related registration rights agreement, GelTech has agreed to file a registration statement with the U.S. Securities and Exchange Commission covering the sale of shares purchased by Lincoln Park.
"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," Michael Reger, GelTech's president, said. "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 utilize the facility."
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.