SafeStitch Medical, Inc. - FORM 10-K - XML - IDEA: XBRL DOCUMENT - March 29, 2012

NOTE 14—SUBSEQUENT EVENTS

In February 2012, the Company granted to directors, officers, existing employees and consultants an aggregate of 813,500 options to purchase the Company’s common stock under the 2007 Plan. The options were granted at exercise prices of $0.65 and $0.85 per share.

On February 17, 2012, the Company entered into a stock purchase agreement (the “2012 Stock Purchase Agreement”) with 35 investors (the “Investors”) pursuant to which the Investors agreed to purchase an aggregate of 20,794,000 shares of Common Stock (the “Shares”), at a price of $0.40 per share, with net proceeds to the Company of $8.3 million. A portion of the proceeds was used to pay off $3.1 million outstanding under the Credit Facility, and the balance of the proceeds will be used for continued research, development and commercialization of the Company’s products and product candidates. Among the Investors purchasing Shares were Frost Gamma, Dr. Jane Hsiao, the Company’s Chairman of the Board, Jeffrey Spragens, the Company’s President and Chief Executive Officer and Richard Pfenniger, a member of the Company’s Board of Directors. Frost Gamma and Dr. Hsiao each purchased 4,500,000 shares, Mr. Spragens purchased 250,000 shares, and Mr. Pfenniger purchased 125,000 shares.