Baxano Surgical Inc. (NSDQ:BAXS) offered few details about its latest private placement funding round, saying only that it raised $10 million from "entities affiliated with two institutional investors."
The spinal surgery devices maker had announced the funding agreement last month, saying that it would offer subordinated convertible debentures and warrants to purchase more than 9.4 million shares of common stock as long as its shareholders approved the transaction.
"We are pleased to have entered into this financing transaction," president & CEO Ken Reali said in prepared remarks. "We plan to use the proceeds to expand our product portfolio through the development of the Avance pedicle screw system, and to execute our commercial growth strategy as we continue to penetrate the minimally invasive spine market."
The debentures are convertible into common stock at an initial conversion price of $1.06 apiece and bear interest at 6% per year, maturing in March 2017. The warrants have an initial exercise price of $1.19 per share, according to a Baxano statement.
Baxano shares closed last night at 97¢ per share, down 1¢ on the day. The stock has lost 4% since the start of the year.
