Company Update (NASDAQ:AMDA): Amedica Corporation Enters Debt Exchange Agreement
Amedica Corporation (NASDAQ:AMDA), a company that develops and commercializes silicon nitride ceramics as a biomaterial platform, is pleased to announce it has entered into a debt exchange agreement with Riverside Merchant Partners, LLC, Hercules Technology III, L.P. and Hercules Capital, Inc. Amedica agreed to exchange $1.0 million of the principal amount outstanding under the term loan held by Riverside for a subordinated convertible promissory note in the principal amount of $1.0 million and a warrant to purchase 100,000 shares of common stock. The subordinated convertible promissory note is convertible into shares of common stock at a fixed conversion price of $1.43 and the exercise price of the warrant is fixed at $1.62 per share. The subordinated convertible promissory note bears interest at a rate of 6% per annum and is due March 3, 2018.
“The favorable terms of this agreement allow Amedica to better position itself to refinance the balance of its outstanding debt,” said Dr. Sonny Bal, Chairman and Chief Executive Officer. “Upon Riverside’s anticipated conversion of the convertible promissory note, the reduction of our total debt level with modest fixed warrant coverage will provide confidence to our investors, while unlocking additional working capital. Restructuring our debt makes sense in light of the several promising near- and intermediate-term milestones for Amedica that will enhance shareholder value.”
Pursuant to the terms and conditions of the exchange agreement, upon mutual agreement of Amedica and Riverside at any time prior to June 1, 2016, or, if certain conditions are met, at Amedica’s option on May 3, 2016, Amedica and Riverside can exchange an additional $2.0 million of the principal amount of the Hercules term loan 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. (Original Source)
Shares of Amedica are currently trading at $1.61, down $0.02 or -1.37%. 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 $2.08 and its 200-day moving average is $2.70.
Amedica Corp. 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. The company 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.