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SafeStitch Medical Completes $5 Million Capital Funding

^{Published on 2010-06-17 13:25:16 - Market Wire}
 

MIAMI--([ BUSINESS WIRE ])--SafeStitch Medical, Inc. (OTCBB:SFES) today announced that it has closed on the issuance of approximately five million shares of the Company's Common Stock, par value $0.001, at a price of $1.00 per share. The shares were issued on June 15, 2010 pursuant to a stock purchase agreement with 20 private investors for aggregate proceeds of approximately $5.0 million. Shares issued pursuant to the stock purchase agreement are restricted securities, and no registration rights have been granted.

"will also support final preparations and device production for afirst-in-humana™ clinical trials of our endoscopic gastroplasty kit, which we expect will begin later this year."

"We are pleased to receive these funds and especially appreciate the confidence these investors have shown in SafeStitcha™s future," said Jeffrey Spragens, SafeStitcha™s President and CEO. Mr. Spragens noted that athis infusion of capital comes just as we are launching commercial sales of our AMID Stapler^TM, for which we have established a nationwide team of sales professionals under the direction of Caron Da™Ambruso and J.C. Campbell, two well-regarded and experienced medical device sales executives.a Dr. Stewart Davis, the Companya™s Chief Operating Officer, added that the funds awill also support final preparations and device production for afirst-in-humana™ clinical trials of our endoscopic gastroplasty kit, which we expect will begin later this year.a

Among the investors purchasing shares pursuant to the agreement were Frost Gamma Investments Trust, an entity controlled by Dr. Phillip Frost, the largest beneficial owner of the Companya™s common stock, Hsu Gamma Investments, L.P., an entity controlled by Dr. Jane Hsiao, the Companya™s Chairman of the Board and Grandtime Associates Limited, a Taiwan-based investment company. For more information, see the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on June 17, 2010.

About SafeStitch Medical, Inc.

Miami-based SafeStitch Medical, Inc. is a medical device company primarily developing endoscopic and minimally invasive surgical devices. SafeStitcha™s product portfolio includes the AMID Stapler^TM, endoscopic gastroplasty devices for bariatric (obesity) surgery and repair of gastroesophageal reflux disorder (GERD), a standard bite block, an airway bite block and the SMART^TM Dilator. The Company has also started development of devices for excision and diagnosis of Barrett's esophagus and natural orifice transluminal endoscopic surgery (NOTES). Information about the Company may be found on its website at: [ www.safestitch.com ].

This press release contains "forward-looking statements," as that term is defined under the Private Securities Litigation Reform Act of 1995 (PSLRA), which statements may be identified by words such as "expects," "plans," "projects," "will," "may," "anticipates," "believes," "should," "intends," "estimates," and other words of similar meaning, including statements regarding our product development and commercialization efforts, and our ability to significantly improve clinical outcomes in patients, as well as other non-historical statements about our expectations, beliefs or intentions regarding our business, technologies and products, financial condition, strategies or prospects. Many factors, including those described in our filings with the Securities and Exchange Commission, could cause our actual activities or results to differ materially from the activities and results anticipated in forward-looking statements.These factors include that the commercialization of the AMID Staplera" or any of our other devices may be delayed or may be unsuccessful, that we will be unable to successfully develop and commercialize our minimally invasive gastroplasty devices for obesity and GERD procedures, that our devices under development, including our endoscopic gastroplasty kit, may not achieve the expected results or effectiveness and may not generate data that would support their approval or marketing, that others may develop products and devices, including other devices for hernia repair, obesity or GERD procedures, which are superior to our devices, and that our devices may not have advantages over presently marketed products or devices or products or devices under development by others.In addition, forward-looking statements may also be adversely affected by risks inherent in funding, developing and obtaining regulatory approvals of new, commercially-viable and competitive products and treatments, general market factors, competitive product development, product availability, federal and state regulations and legislation, the regulatory process for new products and indications, manufacturing issues that may arise, patent positions and litigation, among other factors.The forward-looking statements contained in this press release speak only as of the date the statements were made, and we do not undertake any obligation to update forward-looking statements, except as required under applicable law.We intend that all forward-looking statements be subject to the safe-harbor provisions of the PSLRA.