Kips Bay Medical Announces Closing of Public Offering of Common Stock, Including Exercise of Underwriters' Over-Allotment Option

MINNEAPOLIS, Jan. 29, 2014 (GLOBE NEWSWIRE) -- Kips Bay Medical, Inc. (Nasdaq:KIPS), a medical device company focused on manufacturing and commercializing its external saphenous vein support technology, the eSVS^® Mesh, for use in coronary artery bypass grafting surgery, today announced the closing of its previously announced underwritten public offering of 5,250,000 shares of common stock and the sale of an additional 785,000 shares of common stock pursuant to the exercise in full by the underwriters of the over-allotment option granted to the underwriters in connection with the offering. The gross proceeds to Kips Bay from the offering, including the exercise of the over-allotment option by the underwriters, are $4,224,500, before deducting underwriting discounts and commissions and other offering expenses payable by Kips Bay.

Kips Bay intends to use the net proceeds of this offering for working capital and general corporate purposes, including funding the process of seeking regulatory approval to market its eSVS Mesh in the United States and abroad, including continuing its human clinical trials.

Aegis Capital Corp. acted as the sole book-running manager for the offering.

A shelf registration statement on Form S-3 was filed with the Securities and Exchange Commission and has become effective. A copy of the final prospectus supplement related to the offering has been filed with the Securities and Exchange Commission. Electronic copies of the final prospectus supplement and the accompanying prospectus may be obtained by either contacting the representative of the underwriters (as set forth below) or by accessing the Securities and Exchange Commission's website at https://www.sec.gov.

About Kips Bay Medical

Kips Bay Medical, Inc., headquartered in Minneapolis, Minnesota, is a medical device company focused on manufacturing and commercializing its external saphenous vein support technology, or eSVS Mesh for use in coronary artery bypass grafting surgery. The eSVS Mesh is designed to be fitted like a sleeve on the outside of saphenous vein grafts to strengthen SVGs used in coronary artery bypass graft surgery. By strengthening the SVG and preventing the damaging expansion of the vein graft, the company hopes to reduce or prevent the resulting injury which can lead to SVG failure and potentially costly and complicated re-interventions for patients undergoing CABG surgery. Additional information about Kips Bay Medical, Inc. can be found at www.KipsBayMedical.com.