Redwood City, Calif.-based Avinger said it plans to float nearly 8.6 million shares at $3.50 apiece, plus a possible 1.3-million-share underwriters over-allotment that could bring in another $4.5 million. The offering is slated to close August 16, Avinger said. The company makes devices to treat peripheral vascular disease.
The net proceeds are earmarked for general corporate purposes and possibly to pay down debt owed to CRG Partners should Avinger fail to meet a $23 million revenue covenant in 2016. The company, which registered to raise as much as $50 million in March, last month released lower-than-expected sales guidance for the rest of 2016 of $19 million to $23 million, down from $25 million to $30 million previously.
Canaccord Genuity and Cowen & Co. are joint book-runners on the deal, with BTIG and Stephens Inc. as co-managers.
AVGR shares were down -17.0% to $3.84 apiece today in early trading.