Avinger (NASDAQ:AVGR) Inc., a medical device company specializing in developing treatments for vascular diseases, has announced an increase in its at-the-market (ATM) offering. As of today, the company is set to offer additional shares up to an aggregate price of $1,324,918. This move follows a series of increases to the offering that began in September 2023.
The shares will be sold pursuant to Avinger's existing shelf registration statement, which was declared effective by the Securities and Exchange Commission (SEC) on April 7, 2022. The latest prospectus supplement and the accompanying prospectus were filed with the SEC on October 17, 2024.
The decision to expand the ATM offering allows Avinger to potentially raise more capital, with the intention to use the net proceeds for working capital and general corporate purposes. Management has yet to specify how the funds will be allocated or the timing of these expenditures. There is also the possibility that a portion of the proceeds could be used for acquisitions or debt repayment, although no firm commitments have been made at this time.
The total number of shares to be sold and the resulting proceeds are not currently determinable, as there is no minimum offering amount set under the ATM Agreement. This provides Avinger with flexibility in managing the offering based on market conditions and the company's financial needs.
Avinger's legal counsel, Dorsey & Whitney LLP, has provided an opinion on the validity of the shares to be sold under the ATM Agreement, which is included in the SEC filing.
This expansion of the ATM offering reflects Avinger's ongoing efforts to strengthen its financial position and support its operational and strategic initiatives. The information in this article is based on a press release statement.
In other recent news, Avinger Inc . has made a series of strategic moves, including the strengthening of its intellectual property portfolio with the issuance of a new U.S. patent and the allowance of five additional patents. These developments enhance the protection of Avinger's image-guided, catheter-based systems designed for vascular disease diagnosis and treatment.
In financial developments, Avinger's Q2 2024 financial results revealed a total revenue of $1.8 million with a gross margin of 20%. Operating expenses were reduced to $4.5 million, resulting in a net loss of $4.4 million. Avinger also secured approval from its shareholders to issue common stock upon the exercise of certain warrants, a move that aligns with Nasdaq Listing Rule 5635(d).
The company further bolstered its financial position by converting $11 million of debt into convertible preferred stock and completing a public offering valued at up to $24 million. In a strategic partnership, Avinger joined forces with Zylox-Tonbridge to penetrate the Greater China market. These are recent developments that highlight Avinger's ongoing efforts to strengthen its financial position and expand its market reach.
InvestingPro Insights
Avinger's decision to increase its ATM offering comes at a critical time for the company, as revealed by recent InvestingPro data. With a market capitalization of just $2.23 million, Avinger is operating in a challenging financial environment. The company's revenue for the last twelve months as of Q2 2024 stands at $7.43 million, with a concerning revenue decline of 9.2% over the same period.
Two key InvestingPro Tips shed light on Avinger's current situation. Firstly, the company is "quickly burning through cash," which aligns with the need for additional capital through the expanded ATM offering. Secondly, Avinger "holds more cash than debt on its balance sheet," potentially providing some financial flexibility as it seeks to raise funds.
These insights underscore the importance of the ATM offering expansion for Avinger's working capital and general corporate purposes. Investors considering Avinger's stock may find value in exploring the additional 9 InvestingPro Tips available, which could offer a more comprehensive view of the company's financial health and market position.
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