AVGR - Avinger to receive up to $15 Million Equity Funding from Strategic Partner

2024-03-07 10:24:22 ET

DENVER, Colo., Mar 07, 2024 ( 247marketnews.com )- Avinger, Inc. (NASDAQ: AVGR ) stated that it formed a new strategic partnership with Zylox-Tonbridge Medical Tech, a Chinese medical device company

AVGR is trading at $3.871, up $0.171 (+4.6216%), on 1,106,500 shares.

Its 52-week range is $2.50 to $18.00, while today’s range is $3.86 to $4.13. It’s average volume is 26,805 shares, while its recently reported outstanding share count of 1.28M and a float of 1.17M shares.

Zylox-Tonbridge has committed to funding to $15 million of equity funding in two tranches, in exchange for a licensing agreement for Avinger’s products in the Greater China region, and a technology transfer agreement to build cost-efficient manufacturing capacity to support global sales.

“We are excited to announce this strategic transaction with Zylox-Tonbridge, a dynamic leader in the peripheral interventional market in China,” said Jeff Soinski, Avinger’s President and CEO. “Our broad-reaching partnership creates an exciting new pathway for Avinger products to enter the large and growing Greater China market through an established commercial channel. It also provides the opportunity for a more cost-efficient manufacturing structure to support the growth of global sales, as well as the potential for Avinger to access Zylox-Tonbridge’s high-quality peripheral products for distribution in the U.S. and Germany.”

Dr. Jonathon Zhao, Chairman and CEO of Zylox-Tonbridge, said, “We are pleased to partner with Avinger to provide Chinese healthcare professionals and patients with cutting-edge medical technologies and disruptive innovative products. We believe this collaboration will expand the company’s Peripheral Vascular Intervention product portfolio, reinforce our market leadership, and accelerate the growth of the vessel preparation business in China’s peripheral vascular intervention market. By leveraging our leading manufacturing capabilities and working with Avinger, we are confident in bringing patients more cost-efficient and high-quality products. We are looking forward to cooperating with global partners to share growing market opportunities by offering high-quality and affordable innovative medical products and services.”

Mr. Soinski continued, “Concurrent with this transaction, we have significantly improved our balance sheet with a cash infusion, the exchange of our Series A preferred stock for new Series A-1 preferred stock, and the deferral of principal payments on our existing debt for three years. Combined, these transactions represent a strong show of confidence in our product portfolio.

“With this transaction, we have positioned Avinger to access exciting new growth opportunities in China and improve its operating cost structure as global manufacturing comes online. We have also provided the opportunity for new revenue growth and increased sales productivity in our current markets through the potential distribution of Zylox-Tonbridge products in the U.S. and Germany. We are excited to move forward in 2024 as we continue to drive sales of our best-in-class commercial peripheral products and ready our groundbreaking image-guided coronary CTO-crossing device for IDE submission later this year.”

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