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Avinger Secures $55MM in Financing From CRG

September 23, 2015, 07:16 AM
Filed Under: Medical

Avinger, Inc., a developer and manufacturer of image-guided, catheter-based systems for the treatment of peripheral arterial disease (PAD) and pioneer of the lumivascular approach to treating vascular disease, has entered into a term loan agreement and a securities purchase agreement with CRG (formerly Capital Royalty L.P.). The agreements provide Avinger with new financing of up to $55.0 million.

Under the terms of the term loan agreement, Avinger initially borrowed $30.0 million, which requires only interest payments for four years. Concurrent with this first tranche, CRG purchased $5.0 million in shares of the Company's common stock at a price of $14.357 per share. Avinger has the option under the term loan agreement to borrow an additional $20.0 million, in two tranches of $10.0 million each, at its discretion upon achieving certain milestones.

Avinger plans to use proceeds from the financing to retire existing debt, fund post-marketing clinical trials and begin broad-scale commercialization of the Pantheris image-guided atherectomy device in 2016. Avinger recently filed a submission with the U.S. Food and Drug Administration (FDA) for 510(k) clearance to market Pantheris for the treatment of patients with PAD.

"We are pleased to support Avinger in achieving its growth plans and believe that the Company's lumivascular technology will translate into significantly improved treatment for PAD patients," said Charles Tate, Chairman of CRG. "The demonstrated clinical value of the Pantheris device gives us the confidence to invest in Avinger's business model."

"We are delighted to have the confidence and support of CRG, an investment partner renowned for its strategic investments in healthcare," said Jeff Soinski, President and CEO of Avinger. "Avinger is in a unique and exciting position today as we move towards commercialization of Pantheris early next year. This loan facility not only provides us with greater financial flexibility in the future, but is an important step in our ability to bring the benefits of lumivascular technology to PAD patients."

Armentum Partners acted as a financial advisor to Avinger for the transaction.

Avinger, Inc. is a commercial-stage medical device company that designs, manufactures and sells image-guided, catheter-based systems for the treatment of patients with peripheral arterial disease (PAD). PAD is characterized by a build-up of plaque in the arteries that supply blood to the arms and legs.

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