Here are six things to know:
1. Per the agreement, Amedica will exchange $1 million of the principal amount outstanding under the term loan held by Riverside for a subordinated convertible promissory note in the principal amount of $1 million, as well as a warrant to purchase 100,000 common stock shares.
2. The subordinated convertible promissory note is convertible into common stock shares at a fixed price of $1.43.
3. The exercise price of the warrant is fixed at $1.62 per share.
4. The subordinated convertible promissory note has an interest rate of 6 percent per annum. It is due March 3, 2018.
5. Based on the exchange agreement and mutual agreement of Amedica and Riverside, they may exchange an additional $2 million of Hercules’ term loan principal amount for an additional subordinated convertible promissory note.
“The favorable terms of this agreement allow Amedica to better position itself to refinance the balance of its outstanding debt,” said Sonny Bal, MD, JD, MBA. “Restructuring our debt makes sense in light of the several promising near and intermediate term milestones for Amedica that will enhance shareholder value.”
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