Company Update: Avinger Inc (AVGR) Secures Waiver and Consent to CRG Loan Agreement


Avinger Inc (NASDAQ:AVGR) announced it has entered into an agreement with CRG to waive compliance by Avinger with the minimum revenue covenant for 2017 included in the company’s term loan agreement with CRG. Additionally, CRG agreed to accept payment of interest due on December 31, 2017, in the form of a payment-in-kind (PIK) loan. The PIK loan allows Avinger to conserve cash usage by increasing the principal amount of the loan.

“We appreciate CRG’s ongoing support as we focus on achieving important product development and clinical milestones in coming quarters,” said Jeff Soinski, Avinger’s president and CEO. “CRG’s partnership also provides the flexibility for us to continue to focus our sales force on continued engagement with key accounts in front of our anticipated next-generation Pantheris product approvals in 2018.”

Avinger entered into a term loan agreement and a securities purchase agreement with CRG in September, 2015. The total amount owed to CRG as of September 30, 2017, including principal and deferred interest, was $43.1 million.

Shares of Avinger are up nearly 6% to $0.245 in after-hours trading Thursday. AVGR has a 1-year high of $4.55 and a 1-year low of $0.21. The stock’s 50-day moving average is $0.27 and its 200-day moving average is $0.35.

On the ratings front, Oppenheimer analyst Steven Lichtman assigned a Hold rating on AVGR, in a report issued on August 21. According to TipRanks.com, Lichtman has a yearly average loss of 6.9%, a 51% success rate, and is ranked #4600 out of 4720 analysts.

Avinger is a commercial-stage medical device company that designs, manufactures and sells image-guided, catheter-based systems that are used by physicians to treat patients with peripheral artery disease, or PAD. Its products include Pantheris, Lightbox, Ocelot, Ocelot MVRX, Ocelot PIXL, Pantheris, Wildcat, Juicebox and Kittycat 2. The company offers its products to interventional cardiologists, vascular surgeons, and interventional radiologists.