Avinger Announces Closing of up to $24 Million Public Offering

Rhea-AI Summary

Avinger announced the closing of a $6 million public offering, with potential gross proceeds of up to $24 million if Series Warrants are fully exercised. The offering included 3,614,457 shares of common stock and Series Warrants (A-1, A-2, A-3) at $1.66 per share. The proceeds will be used for working capital and corporate purposes. H.C. Wainwright & Co. acted as the placement agent. The Series Warrants have varying expiration terms based on FDA approvals. This announcement follows the SEC's approval of the registration statement on June 13, 2024.

Positive

• Raised $6 million in initial gross proceeds.
• Potential for an additional $18 million if Series Warrants are fully exercised.
• The proceeds will fund working capital and general corporate purposes.
• H.C. Wainwright & Co. acted as the exclusive placement agent, adding credibility.
• Series Warrants linked to FDA approvals, incentivizing milestones.

Negative

• No assurance that Series Warrants will be exercised, risking the potential $18 million.
• Dilution risk as 3,614,457 new shares were issued.
• Series Warrants could dilute shares further if exercised.
• Initial proceeds of $6 million before placement agent fees and other expenses, reducing net proceeds.
• Relying on FDA approvals for full exercise of Series Warrants introduces regulatory risk.

Insights

Financial Analyst

Avinger, Inc. has announced the closing of a public offering, generating approximately $6 million upfront with the potential to raise an additional $18 million if all Series Warrants are exercised. For investors, it is important to understand the implications of this capital raise.

First, the immediate infusion of $6 million strengthens Avinger's balance sheet, providing much-needed working capital to drive ongoing projects and operations. This is particularly important as the company operates in the capital-intensive medical device sector.

Second, the conditional nature of the Series Warrants introduces a degree of uncertainty. The exercise of these warrants is contingent upon clinical milestones, such as FDA clearance and 510(k) approval. This creates a dual-edged scenario: success in these areas could significantly boost the company's capital, while any delays or failures could leave the additional $18 million untapped.

The exercise prices for these warrants are set at $1.66 per share, aligning with the current offering price. This could be an attractive entry point for new investors, particularly if the company achieves its clinical targets.

In the short-term, the immediate $6 million offers a liquidity boost. In the long-term, potential additional proceeds could provide a significant financial runway, but investors should be cautious about the dependency on clinical milestones.

Medical Research Analyst

For a medical device company like Avinger, the focus on achieving key clinical milestones for their intravascular image-guided catheter-based systems is of paramount importance. These milestones, which include FDA clearance and 510(k) approval, are not just bureaucratic hurdles but indicators of the product's viability and market readiness.

FDA clearance and 510(k) approval are critical for two reasons. First, they validate the safety and efficacy of the device, which is essential for gaining market trust. Second, regulatory approvals often serve as a catalyst for broader market adoption and can significantly impact the company's market penetration.

If Avinger successfully meets these clinical milestones, it could lead to a major competitive advantage. Their image-guided systems could potentially become a standard in the treatment of vascular diseases, expanding their market share and driving revenue growth.

However, the dependency on these clinical milestones introduces risk. Failure to achieve these could delay market entry and affect investor confidence, thereby impacting stock performance.

In summary, while the clinical milestones offer significant upside potential, they also come with inherent risks. Investors should closely monitor the progress of these regulatory approvals.

$6 million upfront with up to an additional $18 million of aggregate gross proceeds upon the exercise in full of clinical milestone-linked Series Warrants

REDWOOD CITY, CA / ACCESSWIRE / June 17, 2024 / Avinger, Inc. (NASDAQ:AVGR), a commercial-stage medical device company developing and marketing the first and only intravascular image-guided, catheter-based systems for diagnosis and treatment of vascular disease, today announced the closing its previously announced public offering of an aggregate of 3,614,457 shares of its common stock (or common stock equivalents in lieu thereof), Series A-1 warrants to purchase up to 3,614,457 shares of common stock, Series A-2 warrants to purchase up to 3,614,457 shares of common stock and Series A-3 warrants to purchase up to 3,614,457 shares of common stock (all the warrants, collectively, the "Series Warrants"), at a combined public offering price of $1.66 per share (or per common stock equivalent in lieu thereof) and accompanying Series Warrants. The Series Warrants have an exercise price of $1.66 per share and will be exercisable beginning on the effective date of stockholder approval of the issuance of the shares upon exercise of the Series Warrants. The Series A-1 warrants expire on the earlier of the five-year anniversary of the date of stockholder approval of the issuance of the shares upon exercise of the Series Warrants and within 60 days following the public announcement of FDA clearance of a second image-guided coronary device with a therapeutic indication other than diagnostic imaging or coronary CTO crossing, the Series A-2 warrants expire on the earlier of the twenty-four month anniversary of the date of stockholder approval of the issuance of the shares upon exercise of the Series Warrants and within 60 days following the public announcement of the occurrence of 510(k) clearance of the image-guided Coronary CTO crossing device and the Series A-3 warrants expire on the earlier of the nine-month anniversary of the date of stockholder approval of the issuance of the shares upon exercise of the Series Warrants and within 60 days following the public announcement of the occurrence of FDA approval of the image-guided Coronary CTO IDE application.

H.C. Wainwright & Co. acted as the exclusive placement agent for the offering.

The aggregate gross proceeds to the Company from the offering were approximately $6 million before deducting the placement agent's fees and other offering expenses payable by the Company. The potential additional gross proceeds to the Company from the Series Warrants, if fully exercised on a cash basis, will be approximately $18 million. No assurance can be given that any of the Series Warrants will be exercised. The Company intends to use the net proceeds from this offering for working capital and general corporate purposes.

The securities described above were offered pursuant to a registration statement on Form S-1 (File No. 333- 279738), as amended, which was declared effective by the Securities and Exchange Commission (the "SEC") on June 13, 2024. The offering was being made only by means of a prospectus forming part of the effective registration statement relating to the offering. Electronic copies of the final prospectus may be obtained on the SEC's website at http://www.sec.gov and may also be obtained by contacting H.C. Wainwright & Co., LLC at 430 Park Avenue, 3^rd Floor, New York, NY 10022, by phone at (212) 856-5711 or e-mail at placements@hcwco.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About Avinger, Inc.

Avinger is a commercial-stage medical device company that designs and develops the first image-guided, catheter-based system for the diagnosis and treatment of patients with vascular disease in the peripheral and coronary arteries. Avinger is dedicated to radically changing the way vascular disease is treated through its Lumivascular platform, which currently consists of the Lightbox series of imaging consoles, the Ocelot and Tigereye® family of chronic total occlusion (CTO) catheters, and the Pantheris® family of atherectomy devices for the treatment of peripheral artery disease (PAD), estimated to affect more than 200 million people worldwide. Avinger is developing its first product application for the treatment of coronary artery disease (CAD), an image-guided system for CTO-crossing in the coronary arteries, which provides the opportunity to redefine a large and underserved market. Avinger is based in Redwood City, California. For more information, please visit www.avinger.com.

Follow Avinger on Twitter and Facebook.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding the anticipated use of proceeds from the offering, the ability of the Company to achieve certain milestone events; the exercise of the Series Warrants upon the achievement of such milestone events or otherwise prior to their expiration, the receipt of stockholder approval, the potential success of our coronary artery disease programs, our anticipated timing of launching new products, our expectations regarding filing an IDE application and initiation of clinical trials, the outcomes of clinical trials and our ability to establish a leading position in the market; the expected cost savings from our headcount reduction; and our ability to expand our portfolio of peripheral devices. Such statements are based on current assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties, many of which are beyond our control, include, but are not limited to, market and other conditions, our ability to manage our company with fewer employees, dependency on a limited number of products; the resource requirements related to Pantheris, Tigereye and our Lightbox imaging console; the outcome of clinical trial results; the adoption of our products by physicians; our ability to obtain regulatory approvals for our products; as well as the other risks described in the section entitled "Risk Factors" and elsewhere in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 20, 2024, and Quarterly Reports on Form 10-Q. These forward-looking statements speak only as of the date hereof and should not be unduly relied upon. Avinger disclaims any obligation to update these forward- looking statements.

Investor Contact:
Matt Kreps
Darrow Associates Investor Relations
(214) 597-8200
mkreps@darrowir.com

Public Relations Contact:
Phil Preuss
Chief Marketing Officer
Avinger, Inc.
(650) 241-7942
pr@avinger.com

SOURCE: Avinger, Inc.

View the original press release on accesswire.com

FAQ

What is Avinger's recent public offering about?

Avinger recently closed a public offering raising $6 million upfront, with potential gross proceeds of up to $24 million if Series Warrants are fully exercised.

How many shares were included in Avinger's public offering?

The offering included 3,614,457 shares of common stock.

What are Series Warrants in Avinger's offering?

Series Warrants (A-1, A-2, A-3) are options to purchase additional shares, with exercise prices and expiration terms linked to FDA approvals.

How will Avinger use the proceeds from the public offering?

Avinger intends to use the net proceeds for working capital and general corporate purposes.

Who was the placement agent for Avinger's public offering?

H.C. Wainwright & Co. acted as the exclusive placement agent.

What are the risks associated with Avinger's public offering?

Risks include no assurance of Series Warrants exercise, potential share dilution, and dependence on FDA approvals.