Avinger Enters into Common Stock Purchase Agreement for up to $15.0 Million with Lincoln Park Capital
November 06 2017 - 7:30AM
Avinger, Inc. (NASDAQ:AVGR) (the “Company”), a leading developer of
innovative treatments for peripheral artery disease (PAD), today
announced that it has entered into a $15 million common stock
purchase agreement (“Purchase Agreement”) with Lincoln Park Capital
Fund, LLC (“LPC”), a Chicago-based institutional investor.
The Company is filing a registration statement with the SEC
relating to the transaction, and upon its effectiveness, Avinger
will have the right and the sole discretion to sell to LPC up to
$15.0 million worth of shares over a 30-month period subject to
certain limitations. Avinger will control the timing and amount of
any future investment, and LPC will be obligated to make purchases
in accordance with the Purchase Agreement. Proceeds from sales of
common stock pursuant to the agreement will be used
for working capital and general corporate purposes.
There are no upper limits to the price LPC may pay to purchase
common stock from Avinger and the purchase price of the shares will
be based on the prevailing market prices of Avinger’s shares at the
time of each sale to LPC. The shares are being offered and sold by
the Company to LPC pursuant to an exemption from registration. LPC
has agreed not to cause or engage in any manner whatsoever, any
direct or indirect short selling or hedging of Avinger’s shares of
common stock. No warrants, derivatives, or other share classes
are associated with this Purchase Agreement. In consideration for
entering into the agreement, Avinger has issued shares of common
stock to LPC as a commitment fee. The Purchase Agreement may
be terminated by Avinger at any time, at its sole discretion,
without any additional cost or penalty.
“We welcome Lincoln Park as a new investor as we approach key
milestones related to the development of our next-generation
Lumivascular catheters,” commented Jeff Soinski, president and CEO
of Avinger. “The ability to sell common stock under the Purchase
Agreement will provide us with flexibility in capital raising and
the potential to extend our financial runway.”
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities nor will there be
any sale of these securities in any state or other jurisdiction in
which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state or jurisdiction. A more detailed description of the Purchase
Agreement is set forth in Avinger’s Current Report on Form 8-K
filed with the SEC on November 6, 2017.
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.
Forward-Looking StatementsThis news release
contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934 and the Private Securities Litigation Reform
Act of 1995. These forward-looking statements include statements
regarding the achievement of future product development milestones,
the effectiveness of a registration statement with the SEC and the
amount of capital to be raised pursuant to the Purchase Agreement
with LPC. Such statements are based on current assumptions that
involve risks and uncertainties that could cause actual outcomes
and results to differ materially. These risks and uncertainties,
many of which are beyond our control, include our dependency on a
limited number of products; our ability to demonstrate the benefits
of our Lumivascular platform; the resource requirements related to
Pantheris; the outcome of clinical trial results; potential
exposure to third-party product liability and intellectual property
litigation; lack of long-term data demonstrating the safety and
efficacy of our Lumivascular platform products; reliance on
third-party vendors; dependency on physician adoption; reliance on
key personnel; and requirements to obtain regulatory approval to
commercialize our products; as well as the other risks described in
the section entitled “Risk Factors” and elsewhere in our most
recent Form 10-Q filed with the SEC on August 9, 2017. These
forward-looking statements speak only as of the date hereof and
should not be unduly relied upon. Avinger disclaims any obligation
to update these forward-looking statements.
INVESTOR CONTACT
Matt FergusonAvinger, Inc.(650) 241-7917ir@avinger.com
Avinger (NASDAQ:AVGR)
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