Amedica Corporation (NASDAQ: AMDA) is after $11 million or more and it is offering new securities in a secondary IPO to enable it raise the money. The securities on offer consist of Class A and Class B units. The specific purpose for the fundraiser was not immediately disclosed, but the AMDA is in need of cash to fund its various operating activities and pay down its debt.
The company’s cash and equivalents at the end of the last quarter was slightly over $7.9 million, indicating a significant decline from cash balance of $11.5 million in the prior quarter. Amedica’s balance sheet reflected total debt of nearly $15 million.
Targeted amount – Amedica Corporation (NASDAQ: AMDA)
Amedica Corporation (NASDAQ: AMDA) is expecting to generate gross proceeds of $11 million from the securities offering. But there is a way it could generate $12.7 million considering that it has granted underwriters in the offering to purchase additional securities in case they face high investor demand for the securities.
Amedica is working with Maxim Group and Ladenburg Thalmann as underwriters in the offering.
Details of the securities on offer
Amedica Corporation (NASDAQ: AMDA) is offering 3.608 million Class A units at a price of $1 per unit. Each Class A unit consists of one share of common stock and one warrant to purchase one share of the company’s common stock. The exercise price of each warrant is $1.00 per share.
Additionally, Amedica is offering 7.392 million Class B units at a price of $1,000 per unit. Each of the Class B unit comprises one share of preferred stock that is convertible to 1,000 shares of common stock. The same Class B unit comprises 1,000 wants that grant the holder the privilege to convert the warrants to 1,000 common shares. But Amedica didn’t disclose the conversion price of each warrant under the Class B units.
In all, the company is offering 11 million shares in the secondary IPO. But the number of shares on offer goes up if you consider that the company has also granted underwriters the leave to purchase up to 1.65 million additional shares to cover overallotment.
If the underwriters exercise their option to purchase additional shares, the offering could end up yielding $12.7 million in gross proceeds for Amedica Corporation (NASDAQ: AMDA).