Company sells stock, series A, series B and series C warrants in deal
By Devika Patel
Knoxville, Tenn., Sept. 8 – Amedica Corp. said it will raise up to $5 million in a registered direct offering of common stock and series B warrants and private placement of series A warrants and series C warrants. Ladenburg Thalmann & Co. Inc. is the agent.
The company will sell 13,123,360 units of one common share and one series B warrant at $0.381 per unit.
The series B warrants are each exercisable at $0.47 until Dec. 30, 2015.
The company will also conduct a concurrent private placement of series A warrants for 13,123,360 shares and series C warrants for 13,123,360 shares. The series A warrants are each exercisable at $0.47 for 66 months. The series C warrants are each exercisable at $0.47 until Dec. 30, 2015.
The strike price is identical to the Sept. 4 closing share price.
Settlement is expected Sept. 11.
As part of this transaction, the company has arranged a settlement agreement with MG Partners II, Ltd. and amended its loan agreements with Hercules Technology Growth Capital, Inc. The Magna settlement agreement will withdraw a previous default notice and waives any contractual rights, including any convertible features associated with Magna’s convertible debentures. Hercules has withdrawn its previous default notice and agreed to reduce the company’s financial cash covenant as the loan is paid.
The commercial biomaterial company is based in Salt Lake City.
| Issuer: | Amedica Corp.
|
| Issue: | Units of one common share and one series B warrant, series A warrants and series C warrants
|
| Amount: | $5 million
|
| Shares: | 13,123,360
|
| Price: | $0.381
|
| Warrants: | One series B warrant per unit;series A warrants for 13,123,360 shares and series C warrants for 13,123,360 shares
|
| Warrant expiration: | Dec. 30, 2015 (series B and series C), 66 months (series A)
|
| Warrant strike price: | $0.47
|
| Agent: | Ladenburg Thalmann & Co. Inc.
|
| Pricing date: | Sept. 8
|
| Settlement date: | Sept. 11
|
| Stock symbol: | Nasdaq: AMDA
|
| Stock price: | $0.47 at close Sept. 4
|
| Market capitalization: | $26.97 million
|
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