Deal also includes warrants for 1,085,018 shares, exercisable at $4.65
By Devika Patel
Knoxville, Tenn., July 1 – Amedica Corp. said it negotiated a $20 million loan with Hercules Technology Growth Capital, Inc. It also plans a $6 million private placement of senior convertible notes with MG Partners II Ltd. Both deals priced on June 30.
The loan is due on Jan. 1, 2018 and accrues interest at the greater of the Prime rate plus 770 basis points and 10.95%.
Hercules also will receive warrants for 516,129 shares, which are each exercisable at $4.65. The strike price is identical to the June 27 closing share price.
The 6% convertibles are due on June 30, 2016 and are convertible into common stock at $3.75 per share, a 19.36% discount to the June 27 closing share price.
MG Partners also will receive warrants for 568,889 shares, which are each exercisable at $4.65. The strike price is identical to the June 27 closing share price.
Proceeds will be used to retire Amedica's senior secured credit facility with General Electric Capital Corp., for commercialization and development of Amedica's Silicon Nitride spinal fusion products and its product candidates for use in total hip and knee joint replacements and for general corporate purposes.
The commercial biomaterial company is based in Salt Lake City.
| Issuer: | Amedica Corp.
|
| Issue: | Loan, senior convertible notes
|
| Amount: | $26 million
|
| Pricing date: | June 30
|
| Stock symbol: | Nasdaq: AMDA
|
| Stock price: | $4.65 at close June 27
|
| Market capitalization: | $55.62 million
|
|
|
| Loan
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| Amount: | $20 million
|
| Maturity: | Jan. 1, 2018
|
| Coupon: | Greater of the Prime rate plus 770 bps and 10.95%
|
| Warrants: | For 516,129 shares
|
| Warrant strike price: | $4.65
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| Investor: | Hercules Technology Growth Capital, Inc.
|
|
|
| Convertible note
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| Amount: | $6 million
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| Maturity: | June 30, 2016
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| Coupon: | 6%
|
| Conversion price: | $3.75
|
| Warrants: | For 568,889 shares
|
| Warrant strike price: | $4.65
|
| Investor: | MG Partners II Ltd.
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