Cytori Announces Common Stock Purchase Agreement with Institutional Investor, Lincoln Park Capital Fund, LLC

Cytori Therapeutics, Inc. (NASDAQ:CYTX) (“Cytori” or the “Company”), announced today that it has entered into a common stock purchase agreement and registration rights agreement (together, the “Agreements”) with Lincoln Park Capital Fund, LLC (“LPC”), a Chicago-based institutional investor and existing stockholder in the Company. According to the terms of the Agreements and subject to a registration statement being filed and declared effective, Cytori will have the right at its sole discretion to sell to LPC up to $20.0 million worth of shares over a 30-month period.  Cytori will control the timing of any future investment and LPC will be obligated to make purchases in accordance with the Agreements. Cytori expects to use the proceeds for working capital and general corporate purposes.
“We anticipate that the forthcoming new year will bring a number of important milestones for Cytori,” said Marc H. Hedrick, M.D., Cytori’s President and CEO. “This $20 million financing facility will help provide additional financial flexibility to Cytori in its efforts to move forward with these key milestones for its stockholders.”There are no upper limits to the price LPC may pay to purchase common stock from the Company and the purchase price of the shares will be based on the prevailing market prices of the Company’s shares at the time of each sale to LPC. No warrants, derivatives, financial or business covenants are associated with the Agreements and LPC has agreed not to cause or engage in any manner whatsoever, any direct or indirect short selling or hedging of shares of the Company’s common stock.  In consideration for entering into the Agreements and committing to fund up to $20.0 million, Cytori has issued shares of common stock to LPC as a commitment fee and will issue additional shares of common stock on a pro-rata basis only when and if shares are sold to LPC.  The Agreements may be terminated by the Company at any time, at its sole discretion, without any additional cost or penalty.A more detailed description of the Agreements is set forth in Cytori’s Current Report on Form 8-K as filed with the SEC which the Company encourages be reviewed carefully.This press release does not constitute an offer to sell or a solicitation of an offer to buy these securities, nor will there be any sale of these securities in any jurisdiction in which such offer solicitation or sale are unlawful prior to registration or qualification under securities laws of any such jurisdiction.About Cytori Therapeutics, Inc.Cytori Therapeutics is a late stage cell therapy company developing autologous cell therapies from adipose tissue to treat a variety of medical conditions. Data from preclinical studies and clinical trials suggest that Cytori Cell Therapy™ acts principally by improving blood flow, modulating the immune system, and facilitating wound repair. As a result, Cytori Cell Therapy™ may provide benefits across multiple disease states and can be made available to the physician and patient at the point-of-care through Cytori’s proprietary technologies and products. For more information: visit www.cytori.com.About Lincoln Park Capital Fund, LLC.LPC is an institutional investor headquartered in Chicago, Illinois.  LPC’s experienced professionals manage a portfolio of investments in public and private entities.  These investments are in a wide range of companies and industries emphasizing life sciences, specialty financing, energy and technology.  LPC’s investments range from multiyear financial commitments to fund growth to special situation financings to long-term strategic capital offering companies certainty, flexibility and consistency.  For more information, visit www.lpcfunds.com.Cautionary Statement Regarding Forward-Looking Statements