Amedica Corporation (NASDAQ:AMDA), a company that develops and commercializes silicon nitride ceramics as a biomaterial platform, is pleased to announce it has reduced its total debt obligations to $12.9 million, a decrease of 47% from the prior year period, with the completion of the previously announced $3.0 million debt exchange.
“With these transactions complete, we have a cleaner, stronger balance sheet for the year ahead,” said Dr. Sonny Bal, Chairman and Chief Executive Officer. “This is another key step in addressing the challenges before us, and positions the company for long-term success. We have now reduced our total debt from $24.3 million in July 2015 to under $13 million, giving us flexibility to evaluate other financing opportunities. Amedica continues to be an innovative scientific and manufacturing company with a remarkable biomaterial found in silicon nitride that has a wide variety of medical and industrial applications.”
Pursuant to the terms and conditions of the exchange agreement, Amedica and Riverside agreed to exchange the additional $2.0 million of the principal amount of the Hercules term loan held by Riverside for an additional subordinated convertible promissory note in the principal amount of $2.0 million with a fixed conversion price of $1.43 and a warrant to purchase an additional 100,000 shares of common stock at a fixed price of $1.62 per share. The principal amount of the Hercules term loan is now $11.1 million resulting in a reduction of the Hercules term loan liquidity covenant to $5.0 million. Additionally, the principal amount of the Riverside subordinated convertible promissory note has been reduced from $3.0 million to $1.0 million as $2.0 million has been converted into shares of common stock of the Company. As of May 2, 2016, the Company has approximately 12.9 million shares of common stock outstanding following conversion of 67% of the Riverside subordinated convertible promissory note.(Original Source)
Shares of Amedica opened today at $1.53, down $0.04 or 2.68%. AMDA has a 1-year high of $12.59 and a 1-year low of $1.16. The stock’s 50-day moving average is $1.68 and its 200-day moving average is $2.19.
Amedica operates as a commercial biomaterial company that focuses on using its silicon nitride technology platform to develop, manufacture and sell a broad range of medical devices. It currently markets spinal fusion products and are developing products for use in total hip and knee joint replacements. The company market a complementary line of non-silicon nitride spinal fusion products which allows it to provide surgeons and hospitals with a broader range of products. These products include three lines of spinal fusion devices and five types of orthobiologics, which are used by surgeons to help promote bone growth and fusion in spinal fusion procedures. The company was founded by Aaron A. Hofmann and Ashok C. Khandkar on December 10, 1996 and is headquartered in Salt Lake City, UT.