REDWOOD CITY, Calif., Nov. 06, 2017 (GLOBE NEWSWIRE) -- Avinger, Inc. (NASDAQ:AVGR) (the “Company”), a leading developer of innovative treatments for peripheral artery disease (PAD), today announced that it has entered into a $15 million common stock purchase agreement (“Purchase Agreement”) with Lincoln Park Capital Fund, LLC (“LPC”), a Chicago-based institutional investor.
The Company is filing a registration statement with the SEC relating to the transaction, and upon its effectiveness, Avinger will have the right and the sole discretion to sell to LPC up to $15.0 million worth of shares over a 30-month period subject to certain limitations. Avinger will control the timing and amount of any future investment, and LPC will be obligated to make purchases in accordance with the Purchase Agreement. Proceeds from sales of common stock pursuant to the agreement will be used for working capital and general corporate purposes.
There are no upper limits to the price LPC may pay to purchase common stock from Avinger and the purchase price of the shares will be based on the prevailing market prices of Avinger’s shares at the time of each sale to LPC. The shares are being offered and sold by the Company to LPC pursuant to an exemption from registration. LPC has agreed not to cause or engage in any manner whatsoever, any direct or indirect short selling or hedging of Avinger’s shares of common stock. No warrants, derivatives, or other share classes are associated with this Purchase Agreement. In consideration for entering into the agreement, Avinger has issued shares of common stock to LPC as a commitment fee. The Purchase Agreement may be terminated by Avinger at any time, at its sole discretion, without any additional cost or penalty.
“We welcome Lincoln Park as a new investor as we approach key milestones related to the development of our next-generation Lumivascular catheters,” commented Jeff Soinski, president and CEO of Avinger. “The ability to sell common stock under the Purchase Agreement will provide us with flexibility in capital raising and the potential to extend our financial runway.”
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities nor will 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 registration or qualification under the securities laws of any such state or jurisdiction. A more detailed description of the Purchase Agreement is set forth in Avinger’s Current Report on Form 8-K filed with the SEC on November 6, 2017.
About Avinger, Inc.
Avinger is a commercial-stage medical device company that designs and develops the first-ever image-guided, catheter-based system that diagnoses and treats patients with peripheral artery disease (PAD). Avinger is dedicated to radically changing the way vascular disease is treated through its Lumivascular platform, which currently consists of the Lightbox imaging console, the Ocelot family of chronic total occlusion (CTO) catheters, and the Pantheris® family of atherectomy devices. Avinger is based in Redwood City, CA. For more information, please visit www.avinger.com.
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 statements regarding the achievement of future product development milestones, the effectiveness of a registration statement with the SEC and the amount of capital to be raised pursuant to the Purchase Agreement with LPC. 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 our dependency on a limited number of products; our ability to demonstrate the benefits of our Lumivascular platform; the resource requirements related to Pantheris; the outcome of clinical trial results; potential exposure to third-party product liability and intellectual property litigation; lack of long-term data demonstrating the safety and efficacy of our Lumivascular platform products; reliance on third-party vendors; dependency on physician adoption; reliance on key personnel; and requirements to obtain regulatory approval to commercialize our products; as well as the other risks described in the section entitled “Risk Factors” and elsewhere in our most recent Form 10-Q filed with the SEC on August 9, 2017. 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.