Avinger Inc. Files 8-K with SEC Regarding Proposal for Assignment for Benefit of Creditors and Dissolution

On December 11, 2024, Avinger, Inc. (NASDAQ: AVGR) submitted a Form 8-K filing with the Securities and Exchange Commission (SEC). The filing outlined a proposal included in a preliminary proxy statement for its upcoming special meeting of stockholders set for January 17, 2025.

The preliminary proxy statement presented a proposition approving an assignment for the benefit of creditors followed by a voluntary dissolution and liquidation. These actions would be undertaken if deemed in the best interests of the company and its shareholders by Avinger’s board of directors.

Notably, Avinger notified CRG (CRG Partners III L.P. and affiliates) on the same day that it was not meeting the $3,500,000 minimum liquidity covenant required by its loan agreement, which constitutes an immediate event of default under the agreement.

Under the terms of the loan agreement, if an event of default occurs due to the assignment proposal, all principal, accrued interest, fees, and other obligations become immediately due and payable. Similarly, non-compliance with the liquidity covenant would allow the Majority Lenders to accelerate the outstanding balance under the agreement.

As of December 11, 2024, around $2.8 million in principal and interest remained outstanding under the loan agreement. Additionally, if the Assignment for the Benefit of Creditors and Dissolution Proposal is effectuated, Avinger’s common stock is anticipated to be delisted from Nasdaq.

The Company anticipates providing more definitive information by filing a proxy statement on Schedule 14A, along with other relevant documents, to solicit proxies from its stockholders for the Special Meeting. Stockholders are advised to carefully review these materials as they become available for crucial information regarding the company’s proposed actions.

Avinger warns investors against overly relying on forward-looking statements within the filing, highlighting the risks, uncertainties, and assumptions that could result in actual outcomes differing from these projections. The company commits to updating or revising these forward-looking statements only as necessary and as mandated by law.

The future of Avinger Inc. hangs in the balance pending the potential implementation of the Assignment for Benefit of Creditors and Dissolution Proposal, subject to approval and ensuing actions after the Special Meeting scheduled for next year. Investors are urged to stay informed as developments unfold.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Avinger’s 8K filing here.

Avinger Company Profile

Avinger, Inc, a commercial-stage medical device company, designs, manufactures, and sells a suite of image-guided and catheter-based systems used by physicians to treat patients with peripheral artery disease (PAD) primarily in the United States and Germany. The company develops lumivascular platform that integrates optical coherence tomography visualization with interventional catheters to provide real-time intravascular imaging during the treatment portion of PAD procedures.