Amedica Completes Debt Exchange and Reduces Debt Obligations by 47 Percent

Amedica Corporation, a company that develops and commercializes silicon nitride ceramics as a biomaterial platform, has reduced its total debt obligations to $12.9 million, a decrease of 47 percent from the prior year period, with the completion of a previously announced $3 million debt exchange.

“With these transactions complete, we have a cleaner, stronger balance sheet for the year ahead,” said Dr. Sonny Bal, chairman and CEO. “This is another key step in addressing the challenges before us, and positions the company for long-term success. We have now reduced our total debt from $24.3 million in July 2015 to under $13 million, giving us flexibility to evaluate other financing opportunities. Amedica continues to be a scientific and manufacturing company with a biomaterial found in silicon nitride that has a wide variety of medical and industrial applications.”

Pursuant to the terms and conditions of the exchange agreement, Amedica and Riverside Merchant Partners agreed to exchange the additional $2 million of the principal amount of the Hercules term loan held by Riverside for an additional subordinated convertible promissory note in the principal amount of $2 million with a fixed conversion price of $1.43 and a warrant to purchase an additional 100,000 shares of common stock at a fixed price of $1.62 per share. The principal amount of the Hercules term loan is now $11.1 million, resulting in a reduction of the Hercules term loan liquidity covenant to $5 million. Additionally, the principal amount of the Riverside subordinated convertible promissory note has been reduced from $3 million to $1 million, as $2 million has been converted into shares of common stock of the company.

As of May 2, the company has approximately 12.9 million shares of common stock outstanding following conversion of 67 percent of the Riverside subordinated convertible promissory note.

Salt Lake City, Utah-based Amedica 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. The company’s products are U.S. Food and Drug Administration-cleared, CE-marked, and currently marketed in the United States and select markets in Europe and South America.

Watch the video below to learn how silicon nitride outperforms PEEK and titanium to achieve bone growth: