On January 14, Avinger Inc. (AVGR) announced the successful closing of its $7.6 million registered direct offering. Consequently, the stock saw an upsurge in the after-hours on Friday.
During the regular session, AVGR saw a high of $0.3199 and a low of $0.2951. The stock closed the session at $0.3119, suffering from a mild loss of 0.57%. Following the announcement, the stock became bullish in the after-hours to gain 20.36% at $0.3754.
The commercial-stage medical device company, Avinger Inc. was founded in 2007. Currently, its 95.56 million outstanding shares trade at a market capitalization of $29.81 million.
AVGR’s Offering
On December 12, the company had announced a registered direct offering with certain institutional investors. AVGR had offered 7,600 shares of its Series D Convertible Preferred Stock and warrants to purchase up to 16,150,000 of its common stock shares. Moreover, the Preferred Stock shares had a state value of $1000 per share. At a conversion price of $0.40 per share, these Preferred stock shares are convertible into approximately 19,000,000 common stock shares.
Furthermore, the Preferred stock was not convertible until after the effective date of the Reverse Split Amendment to AVGR’s Amended and Restated Certificate of Incorporation. Additionally, the exercise price of the warrant is $0.48 per share. Further, the warrants will become exercisable after the effective date of the Reverse Split Amendment and six months after the date of issuance.
In addition, the exclusive placement agent for the offering was H.C. Wainwright & Co.
Closing of the Offering
Hence, on Friday, the company announced the closing of the offering with gross proceeds of $7.6 million. As per the announcement, AVGR will use the net proceeds from the offering for general corporate purposes and working capital purposes.
Added to this, a special meeting of stockholders is expected to be called for the approval of the Reverse Split Amendment. This amendment is to effect a reverse stock split at a ratio between and including 1-for-5 and 1-for-20 to the Amended and Restated Certificate of Incorporation of the company.
AVGR’s Financials
On November 11, the company declared its financial results for the third quarter of 2021.
According to the results, AVGR generated a revenue of $2.4 million in the third quarter of 2021, marking an increase of 3% year over year.
Net loss and comprehensive loss were $6.0 million in the third quarter of 2021, against $5.5 million in Q3 of 2020.
