Baxano Hopes To Raise US$10mn In Private Placement
Baxano Surgical has entered into a definitive agreement with entities affiliated with two institutional investors in connection with a private placement of approximately US$10mn aggregate principal amount of subordinated convertible debentures and warrants to purchase 9.4mn shares of common stock.
Prior to the closing of the private placement, Baxano is required to obtain shareholder approval to increase the total number of its authorised shares of common stock and to approve the issuance of common stock pursuant to the debentures and warrants.
The debentures will be convertible into common stock at an initial conversion price of US$1.06 per share and will bear interest at 6% per year, maturing on March 11 2017. The warrants will have an initial exercise price of US$1.19 per share.
Baxano plans to use the proceeds to expand its product portfolio through the development of the Avance pedicle screw system for spinal fusion, and to execute the company's commercial growth strategy.