Avinger said it won a $55 million term loan and securities purchase agreement with CRG.
The Redwood City, Calif.-based company took out $30 million initially with interest paid over 4 years. CRG purchased $5 million in shares from Avinger along with the loan.
“We are pleased to support Avinger in achieving its growth plans and believe that the company’s lumivascular technology will translate into significantly improved treatment for PAD patients. The demonstrated clinical value of the Pantheris device gives us the confidence to invest in Avinger’s business model,” CRG chairman Charles Tate said in prepared remarks.
Funds are slated to clear existing debt, fund post-market clinical trials and begin commercialization of its Pantheris image-guided artherectomy device in 2016, the company said. It recently submitted FDA 510(k) clearance for the Pantheris for treating patients with PAD.
“We are delighted to have the confidence and support of CRG, an investment partner renowned for its strategic investments in healthcare. Avinger is in a unique and exciting position today as we move towards commercialization of Pantheris early next year. This loan facility not only provides us with greater financial flexibility in the future, but is an important step in our ability to bring the benefits of lumivascular technology to PAD patients,” Avinger CEO Jeff Soinski said in a press release.
Avinger will have the option to borrow an additional $20 million in 2 $10 million tranches upon meeting certain milestones, the company said.