Amedica Corp. (NASDAQ: AMDA) shares tumbled in Tuesday’s session following the announcement of the pricing of its secondary offering. The company is expecting to gain about $11 million in gross proceeds from this underwritten offering.
The underwriters for the offering are Ladenburg Thalmann and Maxim Group.
The company is pricing a total of 3.608 million shares of common stock Class A units at $1 per unit, with each unit consisting of one share of common stock and one five-year warrant to purchase one share of common stock with an exercise price of $1.00 per share.
Apart from this, Amedica priced its 7.392 million Class B units at an offering price of $1,000 per unit. Each of the Class B units is comprised of one share of preferred stock, which is convertible into 1,000 shares of common stock and 1,000 warrants. The company further described the Class B units in the release:
The conversion price of the preferred stock issued in the transaction as well as the exercise price of the warrants are fixed priced and do not contain any variable pricing features nor any price based anti-dilutive features. The preferred stock issued in this transaction includes a beneficial ownership blocker but has no dividend rights (except to extent dividends are also paid on the common stock), liquidation preference or other preferences over common stock.
Ultimately this offering is for 11 million shares — after exercising the conversion option — of common stock valued at $1 each. There is an overallotment option for an additional 1.65 million shares of common stock or additional warrants. The entire offering is valued up to $12.65 million.
The company is focused on the development and application of interbody implants manufactured with medical-grade silicon nitride ceramic. Amedica markets spinal fusion products and is developing a new generation of wear- and corrosion-resistant implant components for hip and knee arthroplasty, as well as dental applications.
Excluding Tuesday’s move, Amedica has underperformed the broad markets, with the stock down about 25% year to date. Over the past 52 weeks, the stock is down over 85%.
Shares of Amedica were trading down over 30% at $0.92 on Tuesday, with a consensus analyst price target of $5.00 and a 52-week trading range of $0.90 to $12.59.
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