Avinger executives waive rights ahead of company liquidation

EditorLina Guerrero
Published 14/12/2024, 08:52 am
Avinger executives waive rights ahead of company liquidation

The decision by Avinger's executive officers to waive these rights is a significant step in the process of dissolving the company, which specializes in surgical and medical instruments and apparatus. Based in Redwood (NYSE:RWT) City, California, and incorporated in Delaware, Avinger has been a player in the medical device industry, generating annual revenue of $7.26 million, with its common stock traded on The Nasdaq Capital Market. Dive deeper into Avinger's financial health with InvestingPro's comprehensive research report, part of our coverage of over 1,400 US stocks.

The decision by Avinger's executive officers to waive these rights is a significant step in the process of dissolving the company, which specializes in surgical and medical instruments and apparatus.

Based in Redwood City, California, and incorporated in Delaware, Avinger has been a player in the medical device industry, generating annual revenue of $7.26 million, with its common stock traded on The Nasdaq Capital Market. Dive deeper into Avinger's financial health with InvestingPro's comprehensive research report, part of our coverage of over 1,400 US stocks. These waivers were made in connection with a potential assignment for the benefit of creditors, a step often taken to liquidate a company's assets and distribute the proceeds to creditors.

According to the waivers, the officers agreed that the transfer of the company's assets to a liquidating trust or assignee for the purpose of liquidation and distribution will not constitute a change of control as defined in their respective agreements. They have also waived their rights to retention bonuses and any claims to accelerated vesting of stock options and restricted stock, as well as extensions of post-termination option exercise periods.

The decision by Avinger's executive officers to waive these rights is a significant step in the process of dissolving the company, which specializes in surgical and medical instruments and apparatus.

Based in Redwood City, California, and incorporated in Delaware, Avinger has been a player in the medical device industry, generating annual revenue of $7.26 million, with its common stock traded on The Nasdaq Capital Market. Dive deeper into Avinger's financial health with InvestingPro's comprehensive research report, part of our coverage of over 1,400 US stocks.

In other recent news, Avinger Inc (NASDAQ:AVGR), a medical device company, reported a slight decrease in total revenue to $1.7 million for the third quarter of 2024, according to recent earnings call and SEC filings.

However, the company has seen improvements in gross margins to 26% and a decrease in operating expenses to $4.1 million due to strategic cost-saving initiatives such as a significant workforce reduction. Net loss and adjusted EBITDA loss have improved by 15% and 12% respectively compared to the previous quarter.

In terms of product and market development, Avinger has launched Pantheris LV, continues to commercialize Tigereye ST, and is progressing with Phase III testing of a new coronary device. A partnership with Zylox-Tonbridge is expected to expand the company's market in China, with regulatory filings in China expected to be completed by the end of 2024 and clearance anticipated in 2025.

Avinger is also facing a potential default on its financial obligations due to a liquidity shortfall and is considering liquidation as a possible course of action. The company has been quickly burning through cash, with negative EBITDA of $17.18 million in the last twelve months. Additionally, Avinger is facing a potential delisting from the Nasdaq due to non-compliance with the minimum bid price requirement.

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