Avinger (NSDQ:AVGR) said late last week it closed a Series B round of convertible preferred stock, raising a total of $18 million prior to discounts and expenses.
In conjunction with the round closing, the Redwood City, Calif.-based company said that lenders under its term loan agreement converted $38 million of debt into the company’s Series A convertible preferred stock. Following the conversion, Avinger said it has approximately $6.5 million in term loans, plus accrued interest, due in June 2023.
Series B preferred stock issued in the offering is convertible into common stock at a price of $2 per share, and each share of Series B preferred stock is accompanied by a Series 1 warrant to purchase 500 additional shares at an exercise price of $2 per share and a Series 2 warrant to purchase 500 shares at $2 per share.
Series 1 warrants in the offering are set to expire on the earlier of 60 days following clearance of a lower-profile Pantheris atherectomy system by the FDA or seven years after issuance. Series 2 warrants are set to expire after seven years, Avinger said.
Proceeds from the offering are expected to support working capital and general corporate purposes with a portion possibly slated to resolve pending legal proceedings, the company said in a prepared statement.
Late last month, Avinger enacted a 1-for-40 reverse split of its common stock, as it looked to satisfy the $1 minimum bid price requirement to be listed on Nasdaq.
