Amedica Corporation (NASDAQ:AMDA), a company that develops and commercializes silicon nitride ceramics, today announced the pricing of an underwritten public offering of units for gross proceeds of $11 million, prior to deducting underwriting discounts and commissions and offering expenses payable by Amedica.
The offering is comprised of Class A Units, priced at a public offering price of $1.00 per unit, with each unit consisting of one share of common stock and one five-year warrant (each, a “warrant”) to purchase one share of common stock with an exercise price of $1.00 per share, and Class B Units, priced at a public offering price of $1,000 per unit, with each unit comprised of one share of preferred stock which is convertible into 1,000 shares of common stock and 1,000 warrants. The conversion price of the preferred stock issued in the transaction as well as the exercise price of the warrants are fixed priced and do not contain any variable pricing features nor any price based anti-dilutive features. The preferred stock issued in this transaction includes a beneficial ownership blocker but has no dividend rights (except to extent dividends are also paid on the common stock), liquidation preference or other preferences over common stock. The securities comprising the units are immediately separable and will be issued separately. The closing of the offering is expected to take place on or about July 8, 2016, subject to the satisfaction or waiver of customary closing conditions.
Ladenburg Thalmann & Co. Inc., a subsidiary of Ladenburg Thalmann Financial Services Inc., and Maxim Group LLC are acting as joint book-running managers in connection with the offering.
A total of 3,608,000 shares of common stock, 7,392 shares of preferred stock convertible into 7,392,000 shares of common stock, and warrants to purchase 11,000,000 shares of common stock will be issued in the offering.
In addition, Amedica has granted the underwriters a 45-day option to purchase up to 1,650,000 additional shares of common stock and/or additional warrants to purchase up to 1,650,000 shares of common stock solely to cover over-allotments, if any, at the public offering price per share and warrant less the underwriting discounts and commissions. (Original Source)
Shares of Amedica Corp. closed last Friday at $1.33, up $0.01 or 0.76%. 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 $1.36 and its 200-day moving average is $1.77.
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. 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.