electroCore Announces Common Stock Purchase Agreement for up to $25 Million with Lincoln Park Capital

BASKING RIDGE, N.J., March 27, 2020 (GLOBE NEWSWIRE) -- electroCore, Inc. (Nasdaq: ECOR), a commercial-stage bioelectronic medicine company, today announced that it has entered into a common stock purchase agreement of up to $25 million with Lincoln Park Capital Fund, LLC (“Lincoln Park”), a Chicago-based institutional investor.

Under the terms of the purchase agreement, electroCore will, at its sole option and discretion, have the right, but not the obligation to sell up to $25 million of its common stock to Lincoln Park over a 36-month period. electroCore will control the timing and amount of any sales to Lincoln Park, and Lincoln Park is obligated to make purchases at quantities and prices in accordance with the purchase agreement, subject to various limitations including those set forth in the purchase agreement and the listing rules of Nasdaq. There are no upper limits to the price Lincoln Park may pay to purchase such common stock.

“We believe that this stock purchase agreement with Lincoln Park gives us financial flexibility to pursue those revenue channels where we see the most significant near-term revenue potential for gammaCore, the U.S. Veterans Administration and the United Kingdom,” said Daniel Goldberger, Chief Executive Officer of electroCore. “We are pleased that Lincoln Park shares our enthusiasm for the long-term potential of our vagus nerve stimulation technology.”

As part of the agreement, Lincoln Park has agreed not to cause or engage in any direct or indirect short selling or hedging of electroCore’s common stock. Furthermore, the purchase agreement does not contain any warrants, derivatives, rights of first refusal, participation rights, penalties or liquidated damages provisions in favor of any party. The agreement may be terminated by electroCore at any time, at its sole discretion, without any additional cost or penalty. In consideration for entering into the purchase agreement, electroCore issued shares of common stock to Lincoln Park as a commitment fee. The shares that may be issued under the purchase agreement have been registered on a shelf registration statement (File No. 333-232655) that was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on September 5, 2019.