REDWOOD CITY, CA - Avinger, Inc. (NASDAQ:AVGR), a medical device company specializing in intravascular image-guided systems, has announced a public offering expected to raise approximately $6 million before fees and expenses. The offering includes over 3.6 million shares and an equal number of Series Warrants, with the potential for an additional $18 million upon full exercise of these warrants.
The offering, priced at $1.66 per share and warrant, is scheduled to close on or about June 17, 2024, subject to customary conditions. The Series Warrants are exercisable upon stockholder approval and are linked to clinical milestones related to the company's coronary device developments.
H.C. Wainwright & Co. serves as the exclusive placement agent for the offering. The proceeds are intended for general corporate purposes and working capital.
Avinger's Lumivascular platform, including the Lightbox imaging consoles and various catheters, addresses vascular disease in peripheral and coronary arteries. With a focus on chronic total occlusion (CTO) in the coronary arteries, the company aims to redefine treatment in this underserved market.
The company's plans are detailed in a registration statement declared effective by the SEC on June 13, 2024. The offering is made through a prospectus, part of the registration statement, available on the SEC's website.
This news is based on a press release statement and does not constitute an offer to sell or a solicitation to buy any securities. The information presented is subject to risks and uncertainties that could affect actual outcomes, including market conditions, regulatory approvals, and the success of Avinger's product development and commercialization efforts.
InvestingPro Insights
Avinger, Inc. (NASDAQ:AVGR) is navigating a challenging financial landscape as it proceeds with its public offering aimed at raising capital for its innovative Lumivascular platform. With a market capitalization of just $2.83 million, the medical device company's financial health raises concerns, reflected in a negative price-to-earnings (P/E) ratio of -0.16, indicating that investors are wary about future profitability. Moreover, the company's revenue has seen a decline of 7.86% over the last twelve months as of Q1 2024, signaling potential headwinds in sales growth.
Investors should note that Avinger's stock price has experienced a substantial decline, falling by over 56.88% in the last month and by 81.32% over the past year. This performance has led to the stock trading near its 52-week low, with the price at the previous close standing at $1.66. An InvestingPro Tip suggests that the company's stock is currently in oversold territory according to the Relative Strength Index (RSI), which could be of interest to contrarian investors looking for a potential rebound.
However, Avinger's financial challenges are not limited to its stock performance. The company is operating with a significant debt burden and is quickly burning through cash, which raises concerns about its ability to meet short-term obligations, as liquid assets fall short. With no dividends being paid to shareholders, the focus for potential investors is likely to be on the company's ability to turn around its financial situation and capitalize on its product pipeline.
For those considering an investment in Avinger, it's important to weigh these financial metrics and market signals. For more insights and tips on Avinger, including 13 additional InvestingPro Tips tailored to the company's financial and market performance, visit https://www.investing.com/pro/AVGR. Remember, insights like these are part of the comprehensive analysis available to subscribers, and you can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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