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Avinger Announces Pricing of $18 Million Underwritten Public Offering | ||
By: Nasdaq / GlobeNewswire - 14 Feb 2018 | Back to overview list |
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REDWOOD CITY, Calif., Feb. 14, 2018 (GLOBE NEWSWIRE) -- Avinger, Inc. (NASDAQ:AVGR), a leading developer of innovative treatments for peripheral artery disease (PAD), today announced the pricing of an underwritten public offering of Series B convertible preferred stock, together with warrants, for gross proceeds of $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, will convert $38.0 million of debt into the company’s Series A convertible preferred stock. The Series B preferred stock issued in the public offering is convertible into shares of the company’s common stock at a conversion price of $2.00 per share. Each share of Series B preferred stock will be accompanied by (a) a Series 1 warrant, which expires on the earlier of (i) 60 days following the clearance by the FDA of a new lower-profile version of the company’s Pantheris atherectomy system and (ii) the seventh anniversary of the warrant’s issuance, to purchase 500 shares of the company’s common stock at an exercise price of $2.00 per share, and (b) a Series 2 warrant, which expires on the seventh anniversary of its issuance, to purchase 500 shares of the company’s common stock at an exercise price of $2.00 per share. 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. The Series B preferred stock and the warrants are immediately separable and will be issued separately. The closing of the offering is expected to take place on or about February 16, 2018, subject to the satisfaction or waiver of customary closing conditions. 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 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 will be 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), 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 and $3.8 million of backend and prepayment fees, the company will have approximately $41.8 million, or 41,800 shares, of Series A preferred stock outstanding, and 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. CRG has entered into a one-year lockup agreement relating to all Avinger securities that they hold. This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sales of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. A final prospectus relating to this offering will be filed by Avinger with the SEC. When available, copies of the final prospectus can be obtained at the SEC’s website at www.sec.gov or from Ladenburg Thalmann & Co. Inc., Attn: Prospectus Department, 277 Park Avenue, 26th Floor, New York, New York 10172, by calling (212) 409-2000. About Avinger, Inc. Forward-Looking Statements Public Relations Contact Investor Contact |
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