Business
Iridex Announces Convertible Note Financing
MOUNTAIN VIEW, Calif., Aug. 05, 2024 (GLOBE NEWSWIRE) -- IRIDEX Corporation (“Iridex”, or the “Company”) (Nasdaq: IRIX), a worldwide leader providing
About this update from Iridex Corporation
[{"type":"text","content":"MOUNTAIN VIEW, Calif., Aug. 05, 2024 (GLOBE NEWSWIRE) -- IRIDEX Corporation (“Iridex”, or the “Company”) (Nasdaq: IRIX), a worldwide leader providing innovative and versatile laser-based medical systems, delivery devices, and procedure probes for the treatment of glaucoma and retinal diseases, today announced it has executed definitive agreements related to a private placement financing (the “Financing”) of a senior convertible promissory note (the “Initial Note”) with Lind Global Asset Management IX LLC, an entity managed by The Lind Partners (together, “Lind”), which will result in net proceeds of approximately $3.5 million at closing. Subject to certain conditions, the Company may issue a subsequent note (the “Subsequent Note”, and together with the Initial Note, the “Notes”) to Lind for additional net proceeds of approximately $1.5 million, for total potential net proceeds of approximately $5 million to the Company. The Financing is subject to customary closing conditions. “This Financing, together with significant expense reductions implemented and prudent capital management, delivers balance sheet liquidity and operating runway as we pursue success with our strategic process,” said David Bruce, Chief Executive Officer of Iridex. “Several benefits make this small financing favorable for the Company, including low risk-adjusted cost of capital, optionality for early pre-payment and potential for reduced dilution given the conversion price premium. We are focused on maintaining solid liquidity runway in the business to reach success with our strategic process and continued growth recovery that will benefit our stockholders.” Each of the Notes has a 24-month term. The Initial Note has a principal amount of $4,200,000 (the “Initial Note Principal Amount”) and the Subsequent Note, if issued, will have a principal amount of $1,800,000 (the “Subsequent Note Principal Amount” and, together with the Initial Note Principal Amount, the “Principal Amount”). The Notes are convertible into shares of the Company’s common stock at an initial price per share of $2.44 (the “Conversion Price”). Under the terms of the Notes, the Principal Amount the Company is required to repay will be reduced to the extent the Company elects to repay the outstanding Principal Amount (i) within 180 days of the issuance of the applicable Note, or (ii) after 180...