The Redwood City, Calif.-based company said it will offer approximately 2.7 million Class A units consisting of a single share of common stock and a warrant to purchase an additional half of a share for $1.11 per unit.
Avinger will also offer purchasers of Class A units whose purchase would make them owners of more than approximately 5% of the company’s stock the opportunity to purchase 7,000 Class B units in lieu of Class A shares that would exceed the 5% ownership level.
Each Class B unit consists of a single share of Series C preferred stock which are convertible into 901 shares of common stock and include warrants to purchase an additional 450 shares of the company’s common stock.
The offering also includes a 45-day underwriter’s option to purchase up to approximately 1.3 million additional shares and/or warrants to purchase up to an additional 675,675 shares of common stock to cover over allotments.
Avinger said it will look to offer a maximum of $4.5 million in warrants to purchase its stock, $7 million in shares of Series C preferred stock and approximately $5.8 million in common stock issuable upon warrant exercise, according to an SEC filing.
Last month, plaintiffs in a class action suit against Avinger approved a $5 million settlement that the company offered in March.