World Heart to sell nearly 1.5M shares of its common stock to raise $7.3M

Jan 23 2010

World Heart Corporation ("WorldHeart") (Nasdaq: WHRT), a developer of mechanical circulatory systems, announced today that it has obtained commitments from institutional and individual investors to purchase approximately $7.3 million of its common stock in a private placement. WorldHeart has entered into a securities purchase agreement with the investors pursuant to which WorldHeart will sell an aggregate of 1,418,726 shares of its common stock and warrants to purchase up to 2,837,452 additional shares of common stock. Each unit, consisting of one share of common stock and two warrants, each to purchase one share of common stock, will be sold for a purchase price of $5.15. The private placement is subject to customary closing conditions and is expected to close during the week of January 25, 2010. Thomas Weisel Partners LLC acted as Placement Agent on the private placement.

Proceeds from the private placement are expected to be used for general corporate and working capital purposes.

The warrants will be exercisable at an exercise price equal to $4.90, which is the consolidated closing bid price of the common stock as reported on the Nasdaq Global Market on January 21, 2010. The warrants are immediately exercisable with half of the warrants expiring 15 months from the date of the issuance and remaining warrants expiring five years from the date of issuance.

In connection with the private placement, WorldHeart has agreed, subject to certain terms and conditions, to file a registration statement under the Securities Act covering the registration of the common stock and warrants acquired at closing within 60 days after the closing.