Secured Lenders Convert $38 Million of Debt into Equity
Avinger, Inc. (NASDAQ:AVGR),
a leading developer of innovative treatments for peripheral artery
disease (PAD), today announced the closing of an underwritten public
offering of Series B convertible preferred stock, together with
warrants, for gross proceeds of approximately $18.0 million, prior to
deducting underwriting discounts and commissions and offering expenses
payable by Avinger. In conjunction with the closing of the offering, the
lenders under the company’s term loan agreement, CRG LP and certain of
its affiliated entities, have converted $38.0 million of debt into the
company’s Series A convertible preferred stock. Following this
conversion, the Company will have approximately $6.5 million of term
loans, plus any accrued interest since December 31, 2017, due in June
2023. CRG has entered into a one-year lockup agreement relating to all
Avinger securities that they hold.
The company intends to use the net proceeds from this offering for working capital and general corporate purposes, and may also use a portion of the net proceeds to resolve pending legal proceedings.
Ladenburg Thalmann & Co. Inc., a subsidiary of Ladenburg Thalmann Financial Services Inc. (NYSE American:LTS), acted as sole book-running manager in connection with the public offering.
A total of approximately 18,000 shares of Series B preferred stock, convertible into approximately 9.0 million shares of common stock, and warrants to purchase approximately 18 million shares of common stock were issued in the offering.
The securities were offered pursuant to a registration statement on Form S-1 (File No. 333-222517), which was declared effective by the United States Securities and Exchange Commission (“SEC”) on February 13, 2018 and an additional registration statement filed pursuant to Rule 462(b) (File No. 333-223023), which became effective when filed.
The Series A preferred stock is also convertible into shares of the company’s common stock at a conversion price of $2.00 per share. Following the conversion of $38 million of principal amount of loans into Series A preferred stock, approximately $6.5 million of principal, plus accrued interest since December 31, 2017, will remain outstanding under the company’s term loan agreement with CRG. This term loan will mature in June 2023.
About Avinger, Inc.
Avinger is a commercial-stage medical device company that designs and develops the first-ever image-guided, catheter-based system that diagnoses and treats patients with peripheral artery disease (PAD). Avinger is dedicated to radically changing the way vascular disease is treated through its Lumivascular platform, which currently consists of the Lightbox imaging console, the Ocelot family of chronic total occlusion (CTO) catheters, and the Pantheris® family of atherectomy devices. Avinger is based in Redwood City, CA. For more information, please visit www.avinger.com.
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