Baxano Surgical, Inc. Announces Closing of $10 Million Private Placement of Convertible Debentures
April 23 2014 - 7:30AM
Baxano Surgical, Inc. (Nasdaq:BAXS) ("Baxano Surgical" or the
"Company"), a medical device company focused on designing,
developing and marketing minimally invasive products to treat
degenerative conditions of the spine affecting the lumbar region,
announced today the closing of its private placement of
approximately $10 million aggregate principal amount of
subordinated convertible debentures and warrants to purchase
9,428,000 shares of common stock to entities affiliated with two
institutional investors.
The debentures are convertible into common stock at an initial
conversion price of $1.06 per share and bear interest at 6% per
year, maturing on March 11, 2017. The warrants have an initial
exercise price of $1.19 per share.
The securities offered in this financing transaction have not
been registered under the Securities Act of 1933, as amended (the
"Securities Act"), or applicable state securities laws.
Accordingly, the securities may not be offered or sold in the
United States except pursuant to an effective registration
statement or an applicable exemption from the registration
requirements of the Securities Act and such applicable state
securities laws. Pursuant to the terms of a registration rights
agreement entered into with the purchasers, the Company has agreed
to file within 10 days of the closing of this transaction a
registration statement with the Securities and Exchange Commission
registering the resale of the shares of common stock issuable upon
conversion of the debentures, as payment of interest pursuant to
the debentures and upon exercise of the warrants. Any offering of
Baxano Surgical's securities under the resale registration
statement referred to above will be made only by means of a
prospectus.
This release does not constitute an offer to sell or the
solicitation of an offer to buy the securities, nor shall there be
any sale of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of such jurisdiction.
About Baxano Surgical, Inc.
Baxano Surgical, Inc. is a medical device company focused on
designing, developing, and marketing minimally invasive products to
treat degenerative conditions of the spine affecting the lumbar
region. Baxano Surgical currently markets the AxiaLIF® family of
products for single and two level lower lumbar fusion, the VEO®
lateral access and interbody fusion system, iO-Flex®, a proprietary
set of flexible instruments used by surgeons during spinal
decompression procedures, iO-Tome® instrument, which rapidly and
precisely removes bone, specifically the facet joints, which is
commonly performed in spinal fusion procedures and Avance™, an MIS
pedicle screw system used in lumbar spinal fusion procedures.
Baxano Surgical was founded in May 2000 and is headquartered in
Raleigh, North Carolina. For more information, visit
www.baxanosurgical.com.
AxiaLIF, VEO, iO-Flex and iO-Tome are registered trademarks of
Baxano Surgical.
CONTACT: Baxano Surgical, Inc.
Tim Shannon, Chief Financial Officer
919-926-8762
or
Westwicke Partners
Mark Klausner
443-213-0501
baxanosurgical@westwicke.com