Avinger Announces Closing of $18 Million Underwritten Public Offering
February 16 2018 - 01:30PM
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 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.
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.
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. 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.
Public Relations ContactPhil PreussVP of
Marketing & Business OperationsAvinger, Inc.(650)
241-7900pr@avinger.com
Investor Contact Matt FergusonChief Business
Officer and CFOAvinger, Inc.(650) 241-7917ir@avinger.com
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