CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
Related Party Transactions
The Board is
committed to upholding the highest legal and ethical standards of conduct in fulfilling its responsibilities and recognizes that transactions with the Company involving related parties can present a heightened risk of potential or actual conflicts
of interest.
Except as described below and except for compensation for employment or services provided in other roles, there has not
been, since January 1, 2018, nor is there currently proposed, any transaction to which ViewRay, Inc. is or was a party in which the amount involved exceeds $120,000, and in which any of our current directors, executive officers, holders of more
than 5% of any class of our voting securities or any of their respective affiliates or immediate family members, had, or will have, a direct or indirect material interest.
2017 Direct Registered Offering
On October 23, 2017, we entered into two separate Securities Purchase Agreements, and sold an aggregate of 8,382,643 shares of our common
stock for aggregate gross proceeds of approximately $50 million (the 2017 Direct Registered Offering). Pursuant to one of the Purchase Agreements, we agreed to (a) appoint a representative of Fosun International Limited and its
wholly-owned subsidiary Strong Influence Limited (together, Fosun) as a non-voting observer to the Board of Directors and (b) after the date, if ever, that Fosun were to beneficially
own at least 15% of the Companys then outstanding shares of common stock, appoint a representative of Fosun as a director of the Company upon Fosuns request. On October 24, 2019, we appointed Kevin Xie, Ph.D., a representative of
Fosun, upon its request, to serve on our board of directors. These rights expire on the first date that Fosun ceases to own at least 90% of the shares it purchased in the 2017 Direct Registered Offering.
2018 Direct Registered Offering
On February 25, 2018, we entered into a Securities Purchase Agreement, which was subsequently amended and restated on March 5, 2018,
with Fosun International Limited, a stockholder of the company, pursuant to which we sold an aggregate of 4,090,000 shares of our common stock, 3,000,581 shares of newly designated Series A Convertible Preferred Stock and warrants to purchase
1,418,116 shares of our common stock, or the 2018 Offering Warrants, for aggregate gross proceeds of approximately $59.1 million (the 2018 Direct Registered Offering). The purchase price was $8.31 per share for both Series A
Convertible Preferred Stock and common stock, which is equal to the closing price of the Companys common stock on the Nasdaq Global Market on the day of pricing, February 23, 2018. The purchase price for each warrant was equal to $0.125
for each share underlying the 2018 Offering Warrants. We completed the closing of the 2018 Direct Registered Offering on March 5, 2018. In October 2019, Dr. Xie, a representative of Fosun, was appointed to the board of directors.
Dr. Xie was designated by Fosun for election to the Board pursuant to a Securities Purchase Agreement related to the Companys 2017 direct registered offering of common stock.
Sales Consulting Agreement with Puissance Capital Management
In January 2017, the Company entered into a sales consulting agreement with Puissance Capital Management, or PCM, to assist with business
development activities in a key market in Asia. PCM is the investment manager of Puissance Cross Border Opportunities LLP, a stockholder in the Company. Theodore T. Wang, Ph.D., a former member of the Companys board of directors, is the
managing member of the general partners of PCM for the year ended December 31, 2018. The sales consulting agreement had a term of one year with a total consideration of $1.3 million. This amount was fully expensed in the first quarter of
2018.
2019 Public Offering of Common Stock
On December 3, 2019, we entered into an underwriting agreement with Piper Jaffray & Co., as representatives of several
underwriters, or the December 2019 Underwriters, in connection with the issuance and
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